Total global debt surpassed $365 trillion in the first half of 2026 after climbing by $10 trillion, even as government bond yields in several of the world's largest economies reached levels not seen in over a decade, according to CNBC.
The Institute of International Finance, which published the research on Wednesday, found that yields on medium- and long-term government bonds in the U.S., Japan, France, and the U.K. have reached their highest levels in more than a decade. The Washington-based group said those four economies face "persistently large deficits and rising interest expenses — challenges long associated with debt-distressed emerging market sovereigns," according to CNBC.
Interest payments on internationally traded government bonds by advanced economies exceeded $3.3 trillion last year, a figure that dwarfed what the world spent on AI ($2.6 trillion), defense ($3.1 trillion), and clean energy ($2.3 trillion) combined, according to CNBC. The IIF cautioned that mounting debt carries a political dimension, warning of a "vicious cycle between elections and short-term quick fixes, and a long-term vulnerability as the marginal utility of higher debt diminishes."
In its own econ...