{"id":77360,"date":"2026-04-15T18:16:18","date_gmt":"2026-04-15T18:16:18","guid":{"rendered":"https:\/\/diyhaven858.wasmer.app\/index.php\/tracking-the-pain-in-g7-government-debt\/"},"modified":"2026-04-15T18:16:18","modified_gmt":"2026-04-15T18:16:18","slug":"tracking-the-pain-in-g7-government-debt","status":"publish","type":"post","link":"https:\/\/diyhaven858.wasmer.app\/index.php\/tracking-the-pain-in-g7-government-debt\/","title":{"rendered":"Tracking the pain in G7 government debt"},"content":{"rendered":"<p> <br \/>\n<\/p>\n<div xmlns:default=\"http:\/\/www.w3.org\/2000\/svg\" data-testid=\"article-body\">\n<div class=\"bodyItems-wrapper\">\n<p class=\"yf-1fy9kyt\"><!-- HTML_TAG_START -->By Yoruk Bahceli, Ben Welsh, Dhara Ranasinghe and Rocky Swift<!-- HTML_TAG_END --><\/p>\n<p class=\"yf-1fy9kyt\"><!-- HTML_TAG_START -->LONDON\/NEW YORK\/TOKYO, April 14 (Reuters) &#8211; The world&#8217;s major economies have seen their debt levels surge in recent years, while ever-increasing spending demands &#8212; from ageing populations to climate change and defence &#8212; are adding to the pressure.<!-- HTML_TAG_END --><\/p>\n<p class=\"yf-1fy9kyt\"><!-- HTML_TAG_START -->Enter the Iran war https:\/\/www.reuters.com\/world\/iran\/, which has rekindled inflation risks that will strain governments \u200chit by a multitude of shocks this decade alone.<!-- HTML_TAG_END --><\/p>\n<p class=\"yf-1fy9kyt\"><!-- HTML_TAG_START -->The conflict triggered the biggest jump in borrowing costs nL8N40C1RS in years in March in Europe. Heavily dependent on energy imports, the \u200cregion&#8217;s government finances nL8N3ZZ1H0 are facing growing pressure from surging oil and gas prices.<!-- HTML_TAG_END --><\/p>\n<p class=\"yf-1fy9kyt\"><!-- HTML_TAG_START -->A high debt burden that costs a government more risks hurting living standards by constraining spending and capping growth. In a worst-case scenario, a country can hit a wall \u200band struggle to service its debt.<!-- HTML_TAG_END --><\/p>\n<p class=\"yf-1fy9kyt\"><!-- HTML_TAG_START -->This live dashboard https:\/\/www.reuters.com\/data\/under-pressure-2026-04-14\/ tracks key measures of government debt in the Group of Seven (G7) advanced economies:<!-- HTML_TAG_END --><\/p>\n<p class=\"yf-1fy9kyt\"><!-- HTML_TAG_START -->RISING BORROWING COSTS<!-- HTML_TAG_END --><\/p>\n<p class=\"yf-1fy9kyt\"><!-- HTML_TAG_START -->Government bond yields across the G7 have surged following the COVID-19 pandemic and Russia&#8217;s invasion of Ukraine, as central banks raised interest rates aggressively to tame surging inflation.<!-- HTML_TAG_END --><\/p>\n<p class=\"yf-1fy9kyt\"><!-- HTML_TAG_START -->Elevated longer-term borrowing costs also reflect that investors want better returns to compensate for the risk of holding the debt.<!-- HTML_TAG_END --><\/p>\n<p class=\"yf-1fy9kyt\"><!-- HTML_TAG_START -->The Iran war is the latest challenge. Britain, where 10-year yields in March hit their highest since 2008 nL1N40I09W, pays the highest among peers.<!-- HTML_TAG_END --><\/p>\n<p class=\"yf-1fy9kyt\"><!-- HTML_TAG_START -->GOING SHORTER<!-- HTML_TAG_END --><\/p>\n<p class=\"yf-1fy9kyt\"><!-- HTML_TAG_START -->The difference between shorter and long-dated government bond yields has increased sharply, making it relatively more \u200cexpensive to borrow for longer.<!-- HTML_TAG_END --><\/p>\n<p class=\"yf-1fy9kyt\"><!-- HTML_TAG_START -->The pressure is being intensified by fiscal concerns, \u2060central banks reducing bond holdings and big traditional investors in long-term debt such as insurers and pension funds reducing their purchases from Japan to Britain.<!-- HTML_TAG_END --><\/p>\n<p class=\"yf-1fy9kyt\"><!-- HTML_TAG_START -->To mitigate the impact, many governments have started selling bonds with shorter maturities. But that&#8217;s risky too because they have to repay or refinance the debt sooner, so any rise \u2060in yields feeds faster into interest costs.<!-- HTML_TAG_END --><\/p>\n<p class=\"yf-1fy9kyt\"><!-- HTML_TAG_START -->ONE-WAY TRACK?<!-- HTML_TAG_END --><\/p>\n<p class=\"yf-1fy9kyt\"><!-- HTML_TAG_START -->Debt is roughly equal to or higher than economic output across the G7 bar Germany, Europe&#8217;s biggest economy.<!-- HTML_TAG_END --><\/p>\n<p class=\"yf-1fy9kyt\"><!-- HTML_TAG_START -->The 2008 global financial crisis, the 2011-12 euro zone debt crisis and the 2020 pandemic all increased debt levels, hurting growth and raising spending.<!-- HTML_TAG_END --><\/p>\n<p class=\"yf-1fy9kyt\"><!-- HTML_TAG_START -->Japan nL1N40W005 has the highest level, with debt more than double its output, while even Germany, once a champion of austerity, is ramping up its borrowing nL8N3PR014 to fund \u200bdefence \u200band public investments.<!-- HTML_TAG_END --><\/p>\n<\/p><\/div>\n<p>   <button class=\"secondary-btn fin-size-large readmore-button    rounded   yf-r7dg9i\" data-ylk=\"elm:readmore;itc:1;sec:content-canvas;slk:Story%20Continues\" data-yga=\"{&quot;yLinkElement&quot;:&quot;readmore&quot;,&quot;yModuleName&quot;:&quot;content-canvas&quot;,&quot;yLinkText&quot;:&quot;Story Continues&quot;}\" aria-label=\"Story Continues\" title=\"Story Continues\"> <span>Story Continues<\/span> <\/button> <\/p>\n<div class=\"read-more-wrapper\" style=\"display: none\" data-testid=\"read-more\">\n<p class=\"yf-1fy9kyt\"><!-- HTML_TAG_START -->Longer-term, ageing populations, interest bills and increased spending on defence and climate change will raise debt levels \u200bfurther unless there are policy changes.<!-- HTML_TAG_END --><\/p>\n<p class=\"yf-1fy9kyt\"><!-- HTML_TAG_START -->INTEREST PAYMENTS<!-- HTML_TAG_END --><\/p>\n<p class=\"yf-1fy9kyt\"><!-- HTML_TAG_START -->Higher post-pandemic borrowing costs are feeding into governments&#8217; \u200cinterest payments as they refinance low-cost debt at higher market rates.<!-- HTML_TAG_END --><\/p>\n<p class=\"yf-1fy9kyt\"><!-- HTML_TAG_START -->While well below historical peaks for many countries, interest payments as a share of output have risen steadily across most G7 countries recently, notably in the United States nL1N40E0UZ.<!-- HTML_TAG_END --><\/p>\n<p class=\"yf-1fy9kyt\"><!-- HTML_TAG_START -->In fact, interest payments across OECD countries, which include the U.S., already topped defence spending nL1N3Q30BD in 2024.<!-- HTML_TAG_END --><\/p>\n<p class=\"yf-1fy9kyt\"><!-- HTML_TAG_START -->RISING RISK<!-- HTML_TAG_END --><\/p>\n<p class=\"yf-1fy9kyt\"><!-- HTML_TAG_START -->The term premium How Trump&#8217;s policy risk is showing in Treasury bonds on U.S. Treasuries, a key measure of how much compensation investors demand for the risk of holding longer-term bonds, has risen since the pandemic.<!-- HTML_TAG_END --><\/p>\n<p class=\"yf-1fy9kyt\"><!-- HTML_TAG_START -->That reflects anything from concern about U.S. fiscal policy to the Federal Reserve cutting its bond holdings and worries about its independence as well as longer-term inflation uncertainty.<!-- HTML_TAG_END --><\/p>\n<p class=\"yf-1fy9kyt\"><!-- HTML_TAG_START -->It&#8217;s a global phenomenon. The term premium across major OECD countries reached its highest in over 10 years, the organisation \u200cfound recently.<!-- HTML_TAG_END --><\/p>\n<p class=\"yf-1fy9kyt\"><!-- HTML_TAG_START -->MIND THE GAP<!-- HTML_TAG_END --><\/p>\n<p class=\"yf-1fy9kyt\"><!-- HTML_TAG_START -->If there is one debt metric that has improved for some, it&#8217;s how little nL8N3SK0JS investors are \u200bnow willing to be paid to hold individual euro zone governments&#8217; bonds rather than those of Germany, which is deemed \u200bEurope&#8217;s safest borrower.<!-- HTML_TAG_END --><\/p>\n<p class=\"yf-1fy9kyt\"><!-- HTML_TAG_START -->The bloc has come a long way from its debt crisis when Greece \u200bneeded a bailout and the risk of a euro zone breakup sent those costs surging.<!-- HTML_TAG_END --><\/p>\n<p class=\"yf-1fy9kyt\"><!-- HTML_TAG_START -->Look at Italy. Once the poster child for debt woes, growing European cohesion \u200cafter the pandemic, political stability and a lower budget deficit have pushed its \u200bdebt risk premium to the lowest since 2008 recently.<!-- HTML_TAG_END --><\/p>\n<p class=\"yf-1fy9kyt\"><!-- HTML_TAG_START -->In \u200bcontrast, investors now attach greater risk to holding French nL8N3T10W9 bonds as a fractured political backdrop since a shock 2024 election slows efforts to rein in the budget deficit nL1N40C0X0.<!-- HTML_TAG_END --><\/p>\n<p class=\"yf-1fy9kyt\"><!-- HTML_TAG_START -->BUYER BEWARE<!-- HTML_TAG_END --><\/p>\n<p class=\"yf-1fy9kyt\"><!-- HTML_TAG_START -->Japan, the most indebted country in the developed world, is in the spotlight because the spending plans of Prime Minister Sanae Takaichi have rekindled fiscal concerns. The nation&#8217;s debt sales are carefully watched \u200bfor signs of stress.<!-- HTML_TAG_END --><\/p>\n<p class=\"yf-1fy9kyt\"><!-- HTML_TAG_START -->Actually, Japan&#8217;s bond market woes kicked off nL1N3RT03P last \u200cMay after a disastrous long-term bond sale.<!-- HTML_TAG_END --><\/p>\n<p class=\"yf-1fy9kyt\"><!-- HTML_TAG_START -->Long-term Japanese bond yields surged to records after the sale of a 20-year bond saw the lowest level of demand since 2012 and \u200banother measure of investor sentiment reached its second-worst since at least 1987.<!-- HTML_TAG_END --><\/p>\n<p class=\"yf-1fy9kyt\"><!-- HTML_TAG_START -->Japan trimmed longer-dated bond sales in response, helping stabilise demand. Still, borrowing costs face upward pressure.<!-- HTML_TAG_END --><\/p>\n<p class=\"yf-1fy9kyt\"><!-- HTML_TAG_START -->(Reporting by Yoruk \u200bBahceli, Dhara Ranasinghe and Rocky Swift; Graphics by Ben Welsh; editing by Elisa Martinuzzi and Toby Chopra)<!-- HTML_TAG_END --><\/p>\n<\/p><\/div>\n<\/p><\/div>\n<p><br \/>\n<br \/><a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>By Yoruk Bahceli, Ben Welsh, Dhara Ranasinghe and Rocky Swift LONDON\/NEW YORK\/TOKYO, April 14 (Reuters) &#8211; The world&#8217;s major economies have seen their debt levels surge in recent years, while ever-increasing spending demands &#8212; from ageing populations to climate change and defence &#8212; are adding to the pressure. Enter the Iran war https:\/\/www.reuters.com\/world\/iran\/, which has [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":77361,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_daextam_enable_autolinks":"","jetpack_post_was_ever_published":false,"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":"","jetpack_publicize_message":"","jetpack_publicize_feature_enabled":true,"jetpack_social_post_already_shared":true,"jetpack_social_options":{"image_generator_settings":{"template":"highway","default_image_id":0,"font":"","enabled":false},"version":2}},"categories":[10],"tags":[854,7011,7010,6401,213,7012],"class_list":["post-77360","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-business-news","tag-bond-yields","tag-debt-levels","tag-group-of-seven","tag-interest-costs","tag-japan","tag-world39s-major-economies"],"jetpack_publicize_connections":[],"jetpack_featured_media_url":"https:\/\/diyhaven858.wasmer.app\/wp-content\/uploads\/2026\/04\/f845bc80ed56ad51db61fbcad979130b.jpeg","jetpack_sharing_enabled":true,"jetpack-related-posts":[],"_links":{"self":[{"href":"https:\/\/diyhaven858.wasmer.app\/index.php\/wp-json\/wp\/v2\/posts\/77360","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/diyhaven858.wasmer.app\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/diyhaven858.wasmer.app\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/diyhaven858.wasmer.app\/index.php\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/diyhaven858.wasmer.app\/index.php\/wp-json\/wp\/v2\/comments?post=77360"}],"version-history":[{"count":0,"href":"https:\/\/diyhaven858.wasmer.app\/index.php\/wp-json\/wp\/v2\/posts\/77360\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/diyhaven858.wasmer.app\/index.php\/wp-json\/wp\/v2\/media\/77361"}],"wp:attachment":[{"href":"https:\/\/diyhaven858.wasmer.app\/index.php\/wp-json\/wp\/v2\/media?parent=77360"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/diyhaven858.wasmer.app\/index.php\/wp-json\/wp\/v2\/categories?post=77360"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/diyhaven858.wasmer.app\/index.php\/wp-json\/wp\/v2\/tags?post=77360"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}