Global Inflation-Adjusted Borrowing Costs Hit Decade Highs Amid Record Debt Surge

Market gauges of inflation-adjusted borrowing costs have reached their highest levels in over a decade across major economies. This surge is attributed to AI companies and governments significantly increasing bond sales. Global debt hit a record $353 trillion in early 2026, rising by $4.4 trillion in just three months, primarily driven by government spending, corporate debt, and AI investments in the U.S. and China. Total issuance of government and corporate bonds is projected to reach a record $28.8 trillion in 2026.