Why are rising bond yields spurring alarm? And what do they mean for you?

CONSUMER Why are rising bond yields spurring alarm? And what do they mean for you? By Ariel Rabinovitch Global News Posted September 11, 2026 12:24 pm 5 min read Soaring U.S. debt is having an impact on global markets, including a surge in bond yields. Financial analyst, Robert Levy reports. – Aug 23, 2026 LEAVE A COMMENT SHARE THIS ITEM ON FACEBOOK SHARE THIS ITEM ON X SEND THIS PAGE TO SOMEONE VIA EMAIL SEE MORE SHARING OPTIONS DESCREASE ARTICLE FONT SIZE INCREASE ARTICLE FONT SIZE Consumers could be facing higher borrowing costs for longer as bond markets are once again signalling rising economic risk to the finance and investing community amid the Iran war, rising government debt and an escalating trade war. A bond is essentially a loan that governments and companies use to borrow money from the general public, and in return for providing funding, those that purchase bonds expect to earn interest. The yield on the 10-year U.S. government bond increased to about 4.9 per cent as of publication — the highest since 2023, an increase of 0.8 percentage points since the start of September. This also comes after the 30-year bond yield spiked over five per cent in July, the highest since 2007. Meanwhile, Canada’s 10-year government bond yield was at about 3.9 per cent, the highest in nearly two years, with most of the spike happening at the start of the month. This was at the same time that Canada’s retaliatory tariffs on U.S. goods took effect, and raised inflation risks. STORY CONTINUES BELOW ADVERTISEMENT Bond yields tend to fluctuate for a variety of reasons, but a sudden sharp rise in bond yields can signal that investors are concerned about inflation, government debt or economic uncertainty and are choosing to sell their bonds because of the increased perceived risk. Higher yields can also drive up interest rates on mortgages, corporate loans, consumer credit and other products to protect lenders like banks from a higher risk environment. Although the Bank of Canada’s interest rate policy can affect borrowing costs in the short-term, bond market changes have more of an affect on long-term rates. “You have these higher oil prices because of the Iran war and that’s stoking inflation fears, you’re seeing treasury yields in the U.S. spike, and that’s because investors are demanding a higher return on lending the government their money because they see so much risk there,” says mortgage and personal finance expert Clay Jarvis at NerdWallet…