⁠Global Debt Shifts: What It Means for 2026 Bonds

The global government debt reached US$251 trillion in 2025, sending bond yields to multi-year highs. In the U.S., the yield on the 30-year bonds rose to 5.13%, a level not seen since 2007, while Japan and Europe were also in the midst of similar selloffs. That means higher mortgage rates, credit card costs, and business borrowing costs are arising. Governments saw an increase in debt service payments that crowd out spending on vital services. In 2026, debt might reach 100% of global GDP, keeping pressure on bond markets. Australian and worldwide investors must carefully weigh risks and opportunities in this challenging environment. Stay tuned for updated information about bond market developments affecting your finances