The long‑term yields on U.S. and European sovereign debt have risen to a 20‑year high, expanding the global bond market’s volatility. The U.S. Treasury Department and Federal Reserve are warning of such rate swings amid concerns about inflation. As a result, firms and households face new challenges in financing and investment decisions.
The national bond markets are also spreading financial risk, as the global bond market expands; European and Asian sovereign yields have risen. This is expected to increase corporate borrowing costs and reduce investment returns.
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