Global Bond Turmoil: $50 Trillion Sovereign Debt Shock
Global Bond Market in Turmoil: The $50 Trillion Sovereign Debt Shock and What It Means for Korea I've been tracking this bond market dislocation all week, and here's what stood out to me. the G7 sovereign bond market — roughly $50 trillion in outstanding debt, the anchor of every pension fund, insurance company, and central bank reserve portfolio on the planet — is in the grip of its worst dislocation in twenty years. The US 10-year Treasury yield closed at 4.56% on May 22, 2026. Germany's 10-year bund is above 3% for the first time since 2011. Japan's 10-year JGB, held down for years by yield curve control, is testing 2%. And Korea's 10-year government bond has punched through 4.2%, its highest since the European debt crisis. None of this is a coincidence. A war in the Middle East, a new hawkish Federal Reserve chair, and a structural repricing of sovereign risk are all hitting at the same time. The bond market — the part of the financial system that is suppose...