84% of Global Bonds Now Yield More Than 3% as Cost of Money Resets

The global bond market has undergone a dramatic repricing in less than four years.
Roughly 84% of global bonds now yield more than 3%, up from just 12% in January 2022.
That shift reflects one of the fastest changes in the cost of money in decades.
Governments across major economies are issuing large amounts of debt at the same time investors are demanding more compensation for inflation, fiscal risk and duration.
When borrowing needs rise faster than demand for bonds, yields generally have to increase to attract buyers.
That is creating a very different environment from the ultra-low-rate period that dominated much of the previous decade.
The key debate is whether higher yields are temporary or whether persistent fiscal deficits and heavy government borrowing have pushed the global economy into a structurally higher-rate regime.
If the latter proves true, bonds, housing, corporate financing and equity valuations may all need to adjust to a permanently higher cost of capital.