NewsHK
Bond yields have climbed across the world's biggest developed economies since the start of the US-Iran war, tightening the financing environment for the governments most active in global sovereign markets.
The G7 group is now carrying tens of billions of dollars in additional debt costs as a result, a burden that is bearing down on public finances that were already stretched before the conflict began.
The pressure runs through the mechanics of sovereign borrowing. G7 governments fund deficits and roll over maturing debt through continuous bond issuance.
Each new bond priced at a higher yield than the one it replaces locks in a larger debt-service obligation for the life of the paper.
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