Why Bond Markets are Unnerving Rich-World Politicians

Bond markets are unsettled, and so, in turn, is America’s government. On 19 August, the Treasury said that from next month it would increase its own purchases of longer-dated debt. This reflects “increasing administration unease” about yields, analysts at Deutsche Bank believe. Officials have good reason to worry about rising borrowing costs. The yield on ten-year Treasuries reached its highest since January 2025 on 18 August. Scarier still, 30-year yields briefly passed 5.3%, their highest since 2007. And America is not alone. Bondholders are demanding more from governments across much of the rich world. Yields on British, French and German…