Global Bond Yields at Post-Crisis Highs; Debt Sustainability Concerns Mount

Government borrowing costs have surged to levels not seen since the global financial crisis, signaling a new era of expensive money. The bond shock is driven by concerns over debt sustainability and worsening public finances, with notable spread compression as Greece now borrows cheaper than France and Italy, approaching Belgium and Spain. The development marks a structural shift in the cost of capital, with implications for fiscal policy and global risk assets.