Developed-market bond yields hit 2007 highs; Goldman models shock to GDP, investments

Developed-market government bond yields have surged 100-120 bps since January to their highest since 2007, driven by inflation concerns, policy-rate uncertainty, and high deficits. Goldman Sachs quantifies the transmission of this rate shock to the real economy, flagging elevated rates as a major risk to 2027 growth prospects. The analysis underscores how sustained high yields could pressure investments, consumers, and public finances.