Government borrowing costs are jumping across the rich world at once, and that is bad news for stocks, taxpayers, and anyone hoping for cheaper loans.

• Long-term government bond yields hit their highest levels in about 19 years in the US, and rates are climbing just as fast in Germany, France, Italy, the UK, and Japan.
• The cause is ugly: governments everywhere are borrowing more to cover deficits while growth is weak and oil stays expensive because of the Iran standoff.
• The Strait of Hormuz is still blocked, ships are still being hit, and the US-Iran talks have collapsed with no deal in sight.
• Stocks are exposed because the market now leans on AI companies, and those companies need to borrow enormous sums to build data centers.
• Home Depot says the housing market is frozen, with people saying they can afford to spend but are holding back over inflation and gas prices.

Outlook: With no Iran deal and no political appetite to tackle the debt, borrowing costs look set to keep rising, and the 10-year US rate hitting 5% is now a live question.