The cost of debt rises worldwide: Japan hits a 30-year high

WHAT HAPPENED

The 10-year debt interest rose in Japan to 2.91%, the highest since 1996. It also hovers around 4.7% in the U.S. and exceeds 3% in Germany. Governments are paying more to obtain money.

WHY IT MATTERS

Government rates serve as a floor for mortgages, cars, credit cards, and business loans. They rise because inflation remains high, oil surpassed $90 per barrel, and more increases are expected in Japan. Result: more expensive credit and less public money for infrastructure and services.

AND FOR YOUR PORTFOLIO

For a long-term portfolio, higher rates usually increase volatility: they make financing for companies more expensive and reduce the relative attractiveness of some stocks. At home, they can raise the cost of new credit and, over time, pressure prices and employment.