Bond markets will force austerity on Britain as global debt tops $365 trillion and crash fears mount

From the Newshound archive · first published 26 September 2026.

Global debt has surged past $365 trillion after jumping $10 trillion in just the first half of this year, with Britain, the US, France and Japan singled out as especially vulnerable to financial disruption. The yield on the 10-year US Treasury has climbed above 5% for the first time since 2007, rattling Wall Street and sparking warnings that a bond market sell-off could tip into a full stock market crash. Bond markets will reportedly force austerity on Britain and France, delivering a brutal pre-Budget headache for Prime Minister Andy Burnham and Chancellor John Healey. The Institute of International Finance, representing most of the world's banks, says Britain faces 'persistently large deficits and rising interest expenses' — conditions usually associated with struggling developing nations.

American 30-year Treasury yields are at their highest level for 22 years, with the OECD warning this is a direct danger to economic growth.