Borrowing Costs Soar: Global Yields Reach Post-2008 Crisis Highs

Global borrowing costs for leading economies have reached their highest level since the 2008 financial crisis, sparking concerns over inflation and government spending. The Middle East conflict has pushed up oil prices, fueling fears of persistent high inflation.

The yield on 30-year French bonds rose to its highest level since September 2008 at 4.8558%, while France's 10-year bond yield hit its highest level since June 2009 at 4.0516%. Germany's equivalent bond yield rose to its highest since 2011 at 3.2138%.

The ongoing crisis in the Middle East pushed oil prices up by 6% last week, with Brent crude rising higher on Monday as the US and Iran struggled to end the conflict. The US government long-term borrowing costs hit their highest level since the financial crisis, with the 30-year Treasury yield rising to 5.29%, its highest level since 2007.

Japan's 10-year government bond yield also hit a three-decade high as investors anticipated the Bank of Japan would need to raise interest rates soon to prop up the value of the yen.