Global bond selloff signals end of cheap money era

September 6, 2026 at 12:39 PM2 min

This digest was compiled by AI from multiple sources — links to the originals are below.

A global bond selloff is pushing borrowing costs higher, with the U.S. 10-year Treasury yield rising to 4.8% from 4.64% in 10 days. The 30-year yield hit its highest since 2008, driven by U.S. debt above $40 trillion, high oil prices, and inflation pressure. Capital Economics chief economist Neil Shearing says Washington has no plan for its debt problem.

Key Facts

The U.S. 10-year Treasury yield rose to 4.8% from 4.64% in 10 days.
The 30-year Treasury yield hit its highest level since 2008.
Five big tech companies have issued $135 billion in bonds this year to finance AI data centers, compared with an annual average of $35 billion in 2020-2024.
In the UK, £1 of every £12 of public spending already goes to debt interest.
Australia's bond yields have reached a 15-year high.

US Debt and Fiscal Outlook

The U.S. public debt has surpassed $40 trillion, and markets expect the budget deficit to remain around 6% of GDP in the coming period. Capital Economics chief economist Neil Shearing said investors have begun to reprice the U.S. fiscal outlook. Shearing described Washington's approach to the debt problem as having no plan.

Oil and Inflation Pressure

Oil prices rose above $90 after renewed U.S.-Iran conflict, strengthening concerns that inflation could accelerate again. The current picture reinforces expectations that central banks may have to raise interest rates, pushing bond yields even higher.

Corporate and Consumer Impact

Five big technology companies financing AI data centers have issued $135 billion in bonds this year, up from an annual average of $35 billion in 2020-2024. Persistently high bond yields raise government interest costs, corporate investment costs, and consumer credit rates. In the UK, £1 of every £12 of public spending already goes to debt interest, and Australia's bond yields have hit a 15-year high. Developing countries face greater risk, as those forced to roll over debt at 1-2 percentage points higher interest rates may have less for health, education, and climate investment.