Where Bond Yields Are Rising the Fastest
Key Takeaways
- The U.S. 10-year Treasury yield briefly hit 5.04% on September 15, its highest level since 2007.
- Yields have risen even faster elsewhere, led by South Korea (+178 basis points) and Japan (+145 basis points) over the past year.
- Higher yields are raising borrowing costs across the economy, with implications for mortgages, government finances, and equity markets.
Government bond yields are climbing across major economies as investors contend with higher oil prices, inflation pressures, and growing government borrowing needs.
This graphic compares 10-year government bond yields across major economies, based on Bloomberg market data as of September 15, 2026.
Borrowing Costs Reach Multi-Decade Highs
Long-term borrowing costs are reaching levels not seen in decades, with the U.S. 10-year Treasury briefly hitting 5.04% on September 15, its highest level since 2007.
Still, yields have risen faster in South Korea, Japan, Australia, and France than in the U.S. over the past year.
| Country | Sept. 2025 | Sept. 2026 | Change (bps) |
|---|---|---|---|
 South Korea |
2.81% | 4.59% | +178 |
 Japan |
1.58% | 3.03% | +145 |
 Australia |
4.27% | 5.41% | +114 |
 France |
3.48% | 4.50% | +102 |
 U.S. |
4.04% | 5.01% | +97 |
 Greece |
3.33% | 4.28% | +95 |
 Italy |
3.48% | 4.42% | +94 |
 Germany |
2.69% | 3.54% | +85 |
 Portugal |
3.09% | 3.91% | +82 |
 Canada |
3.17% | 3.96% | +79 |
 UK |
4.63% | 5.40% | +77 |
 Spain |
3.24% | 4.01% | +77 |
 Netherlands |
2.85% | 3.61% | +76 |
 Singapore |
1.76% | 2.51% | +75 |
 Mexico |
8.80% | 9.54% | +74 |
 New Zealand |
4.30% | 5.03% | +73 |
 Brazil |
13.74% | 14.45% | +71 |
 Switzerland |
0.19% | 0.55% | +36 |
Japan’s rise marks a significant shift from the ultra-low-rate environment that defined its bond market for decades. Its 10-year yield has crossed 3.0%, reaching its highest level in 30 years as markets anticipate further monetary tightening from the Bank of Japan. Higher yields could also add pressure to Japan’s already large government debt burden.
The sell-off has also spread across Europe. Germany’s 10-year yield reached its highest level since 2009 on September 15, while U.K. borrowing costs have climbed above 5.0%.
How Higher Yields Affect the Economy
Government bond yields act as benchmarks for borrowing costs across the economy. As they rise, financing can become more expensive for mortgages, corporate debt, and other forms of credit.
Governments face pressure as well. Higher yields make refinancing debt more expensive at a time when public debt levels are already elevated across many advanced economies.
The implications also extend to stocks.
With 10-year Treasuries yielding around 5.0%, investors can earn higher returns from relatively safe government debt, raising the hurdle for riskier assets such as equities. Global fund managers now rank turmoil in bond markets as their leading market risk.
Learn More on the Voronoi App
To learn more about this topic, check out this graphic on the top foreign holders of U.S. debt.
- Source: https://www.visualcapitalist.com/ranked-where-government-bond-yields-are-rising-the-fastest/
