IMF warns rising sovereign borrowing costs strain global public finances

The IMF has issued a fresh warning that higher sovereign debt and borrowing costs are straining public finances worldwide, citing a 24-year high in US Treasury yields. Average 10-year G7 government bond yields rose over 1 percentage point between February and September, raising fiscal sustainability concerns ahead of central banker and finance minister meetings in Bangkok. The warning signals growing market pressure on fiscal positions, though the full extent of the strain remains uncertain.