FT analysis: since the US launched a war against Iran in February, rising global
bond yields have pushed up borrowing costs for major developed economies. Yield
moves have added roughly $16 bln to locked-in sovereign financing costs for G7
governments; if the trend continues through end‑Q1 next year the extra cost
could reach about $34 bln. Almost all G7 government yields across maturities now
exceed February levels. The US has borne the bulk of the increase—about $10.6
bln so far and an estimated $21.7 bln if yields remain elevated through end‑Q1
2027—while energy-importing G7 economies including the UK, Italy, Germany and
Japan have also been hit; other G7 countries account for slightly more than
one-third of the additional cost.
