Rising concerns about government debt and political uncertainty are driving up borrowing costs, as evidenced by a sharp increase in 10-year bond yields from 3.2% in late February. Investors appear wary of long-term economic risks, with yields now reflecting heightened expectations of inflation or fiscal strain. The shift underscores growing unease among markets over sustainability of public finances amid broader geopolitical tensions. Economists warn that sustained high yields could tighten financial conditions, impacting growth and borrowing for businesses and households.
Concerns over public finances and political stability have helped push up 10-year bond yields from 3.2% in late February
