Government bond yields rise as inflation concerns spread globally

Bond yields have risen in several countries as investors demand higher returns. Inflation has been cutting into the real value of what bond investors earn, so they are asking for better rates as compensation. Governments and companies have also been borrowing more, which pushes rates up further.

Some investors are worried about the size of US government debt. The US is now paying around three billion dollars a day in interest. That makes interest payments the second-biggest government expense, after Social Security.

Higher bond yields make borrowing more expensive for everyone. Mortgages, car loans, and credit cards all become costlier when yields rise. Central banks have little power to stop these market forces through policy changes alone.