According to an August 30 report by the Financial Times, an analysis of government bond issuance data shows that G7 nations have locked in approximately an additional $16 billion in sovereign debt financing costs due to rising bond yields since the outbreak of the US-Iran war in February this year. Of this, the United States accounted for about $10.6 billion in additional costs. If yields remain at current levels, this additional cost is projected to expand further to approximately $34 billion by the end of Q1 2027. The report points out that the energy supply crisis triggered by the Strait of Hormuz blockade, which pushed up inflation expectations, is one of the significant drivers behind this round of yield increases, impacting major energy-importing countries such as the UK, Italy, Germany, and Japan. Mohit Kumar, Chief European Economist at Jefferies, warned that rising interest rates are one of the biggest risks facing equity and credit markets, and if the US 10-year government bond yield breaks above 5%, the stock market will react negatively.