Interest rates around the world have reached historically high levels, with countries like France and the United States now paying more to borrow money than Greece, a situation not seen since 1996 in Japan. This surge in borrowing costs is driven by a combination of geopolitical tensions, rising inflation, and competition for limited savings between governments and large technology companies. As a result, both governments and households are facing potential financial challenges. In bond markets, long-term interest rates have been hitting record highs since late August, with some rates reaching levels not seen in decades. In Japan, the 10-year government bond rate crossed the symbolic 3% threshold for the first time in over 25 years on Tuesday. In Europe, France has become the riskiest country in the euro zone for investors, with its 10-year bond rate reaching 4.21%—higher than Greece's 4.04%. This is the highest rate France has seen since the 2008 financial crisis. Germany is also affected, with its 10-year government bond, known as the "Bund," reaching its highest yield since 2011. In the United Kingdom, investors now demand a 5.23% return for lending money over 10 years, which poses challenges for the new Labour Party government led by Prime Minister Andy Burnham. For households, the rise in interest rates is likely to lead to more expensive mortgages, as banks pass on increased borrowing costs to consumers. According to the mortgage brokerage firm Cafpi, average mortgage rates in France have already climbed in recent months. For example, the average rate for a 15-year mortgage is now 3.23%, up 0.07 percentage points in a single month. Similar increases are seen for 20-year and 25-year mortgages. This trend is also increasing the financial burden on heavily indebted nations like France and the United States. Valentin Bissat, chief economist at the Swiss bank Mirabaud, estimates that the U.S. government spends between $1.2 and $1.3 trillion annually on interest payments alone. In France, the government is expected to allocate around 64 billion euros to cover interest costs in 2026, a figure that must be accounted for in the 2027 budget. The rise in interest rates is largely due to a series of supply shocks that have contributed to inflation. As prices rise, the real value of money decreases, prompting investors to demand higher returns to compensate for the risk. Central banks respond to inflation by raising interest rates, which reduces the availability of cheap credit and slows economic activity. Investors are currently expecting the European Central Bank (ECB) to increase its rates as early as September, given that inflation in the euro zone has reached its highest level in three years, hitting 3.3% in August. Similarly, the Federal Reserve is also under pressure to act after comments from President Kevin Warsh, who emphasized the need to meet the 2% inflation target, despite current levels at 3.7%. Another factor contributing to higher bond yields is the growing competition for savings. As governments borrow more, and technology companies seek funding for new investments in artificial intelligence, the supply of available savings is struggling to keep up, leading to higher and more volatile interest rates.