Leading economies’ borrowing costs hit highest since 2008 crisis

Government borrowing costs in the US, UK, France, Germany, and Japan have reached their highest level since the 2008 financial crisis. This increase is largely due to investors' concerns over the potential for inflation to remain high, fueled by the ongoing Middle East crisis. As a result, the cost of government debt has risen, making it more expensive for these countries to borrow money. This development is significant for markets and trade, as it could lead to higher interest rates and potentially slower economic growth.

Why it matters

Concern over a potential Iran war is causing investors to demand higher returns on government bonds. This could lead to higher borrowing costs for governments and companies, which may slow down economic growth.

Market impact

Markets & countries in focus

Transmission channels

Likely winners & losers

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