Global rates surge on debt concerns; central banks face credibility test

Advanced-market interest rates have risen sharply across the US, Europe, and Japan, driven by concerns over government indebtedness and a lack of credible debt-control plans. The US public debt has surpassed 100% of GDP, and major central banks (Fed, ECB, BoE, BoJ) have been tightening over the past four years, but the market is now questioning the sustainability of fiscal paths. This signals a potential repricing of sovereign risk and a test of central bank credibility.