The Intelligence from The Economist Valley of the shadow of debt: bond-market jitters
Oct 8, 2026
Alex Domash, an economics correspondent focused on debt and markets, examines surging bond yields, AI investment and France’s fiscal troubles. Tim Cross, a science and technology writer, explores satellites that could beam sunlight onto Earth after dark, from disaster relief to farming, and the risks to wildlife and astronomy. Tom Wainwright, a culture correspondent, reviews Aaron Sorkin’s “The Social Reckoning” and Facebook’s moderation dilemma.
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Rich-World Borrowing Costs Reach Fifteen-Year Highs
- Advanced-economy government yields average about 4%, their highest level in over 15 years.
- Higher borrowing costs will hurt heavily indebted governments first and constrain future spending.
AI Investment Is Competing With Governments For Capital
- Bond yields are rising because AI investment competes with governments for the same pool of savings.
- Hyperscalers may spend $800 billion on data centers this year, while global investment could exceed $5 trillion by 2030.
Persistent Inflation Turns Energy Shock Into Rate Pressure
- The energy shock from the war in Iran has pushed central banks toward rate increases instead of expected cuts.
- Persistent inflation makes it harder to ignore an energy shock that has lasted nearly eight months.
