Eurozone Exposed as Government Borrowing Costs Soar

Government borrowing costs in several advanced economies have hit their highest level since the 2008 financial crisis due to concerns over rising prices and government spending. The yield on 30-year French bonds rose to its highest level since September 2008 at 4.8558%, according to LSEG data.

The increase is a result of investors fearing that the Middle East crisis will keep inflation persistently high, leading to higher interest rates. This has pushed up the cost of debt issued by Paris, Berlin, Washington DC, Tokyo, and London.

Additionally, central bankers have warned that a US tech crash could trigger a financial crisis in Europe, exposing the eurozone due to European households holding €440bn (£380bn) invested in US tech stocks through investment funds.