Why are borrowing costs rising across the world?

For more than a decade, governments got used to cheap borrowing. That era may now be ending.

Government bond markets are flashing warnings around the world.

Across major economies, yields – the interest rates governments pay to borrow – are climbing to levels not seen in years and, in some cases, decades.

Investors are pricing in more risk before they’ll lend to governments already carrying heavy debt loads.

Inflation remains stubborn, geopolitical tensions are adding pressure, and central banks may have to keep interest rates higher for longer.

Those higher borrowing costs are pushing up what banks charge companies and homeowners.