Global bond sell-off pushes yields to multi-decade highs on debt, deficit, inflation fears

Government borrowing costs are surging worldwide, reaching multi-decade highs as markets price in persistent inflation, large fiscal deficits, and heavy debt issuance. The move reflects a repricing of sovereign risk and could tighten financial conditions globally, pressuring equities and raising funding costs for governments. Uncertainty centers on whether central banks will respond with policy adjustments or tolerate higher term premiums.