Borrowing costs soar for governments from the United States to Japan and France

Long-term borrowing costs are climbing across major economies, with bond markets absorbing the combined pressure of geopolitical tensions in the Middle East and high energy prices.

Japan’s 10-year government bond yield briefly moved above 3% on Tuesday, a level it had not reached since 1996. In the United States, the 10-year Treasury yield rose to 4.80%, its highest point since January 2025. The yield on 30-year U.S. debt also reached a level unseen for nearly two decades.

The surge has intensified risk aversion in global markets and revived concerns about the burden of government debt. Higher long-term yields can also weigh on economic growth by increasing financing costs.

The move is notable because it wiped out gains that followed an earlier intervention by U.S. Treasury Secretary Scott Bessent. On Aug. 19, Bessent announced that the Treasury would strengthen its purchases of long-term debt in an effort to limit the federal government’s borrowing costs.