Germany’s 10-year and 30-year bond yields climbed to fresh 15-year highs as global yields rise on mounting debt and geopolitical tensions that lift borrowing costs for households and businesses.

The German Finance Ministry warns that security conditions have transformed dramatically and calls for substantial investments in security and defence.

Delaying investment will be more costly in the long run, as interest payments are projected to surge from about €41.9 billion in 2027 to €80.7 billion by 2030 due to higher debt.

Markets have pared back expectations for Fed rate hikes amid softer U.S. data, adding to a shifting global rate outlook.

IMF and ING economists warn of debt spirals for major economies including the U.S., Japan, France, and Italy, which could constrain investment and fiscal flexibility.

Equity benchmarks slipped with the Nasdaq and STOXX 600 in negative territory as traders weighed term-premium effects on broader assets.

Foreign ownership of U.S. government bonds fell in June, notably among Japan, the UK, and China, suggesting shifting demand.

There is a structural shift away from long-dated issuance toward shorter maturities, raising leverage risks for hedge funds and potential funding-market distortions.

U.S. President Trump stated no talks with Iran and claimed the Strait of Hormuz remains open, contributing to energy-price pressures.

Broader concerns about fiscal stability in France, Japan, the U.K. and the U.S. added pressure on global bond markets.

Policy shifts including reduced forward guidance from the Fed and ECB, along with credibility concerns at the Bank of Japan, are fueling investor unease and higher long-term yields.

IMF and EU bodies advocate stricter fiscal consolidation to restore credibility, while EU debt rules face pressure and are being sidestepped for political and energy incentives.