The countries most threatened by turbulent bond markets
by The Economist · Australian Financial ReviewThe Economist
Oct 12, 2026 – 10.16am
Forever, it turns out, was temporary. For much of the 2010s, economists were worried that interest rates would remain near zero indefinitely, held down by too much saving and too little investment. All of a sudden, the reverse is true. Borrowing costs are leaping across the rich world and governments are starting to sweat.
On October 5, the yield on America’s 10-year bonds topped 5.3 per cent, its highest in more than 20 years. Even in Japan, long a byword for near-zero rates, the 10-year yield has climbed above 3 per cent for the first time since 1996.
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