Benchmark 10-year government bond yields surged across the United States, Europe and Japan, with the U.S. yield reaching 5.04% intraday, or 5.03% in a later market account, its highest level since 2007 before slipping below 5%. The United Kingdom also reached a 2007-era level, while Japan reached a level unseen since 1996, Germany its highest since 2009 and France its highest since 2008. Oil above $100 a barrel, renewed Middle East hostilities, persistent inflation, heavy government debt issuance and widening fiscal concerns intensified the repricing of sovereign risk. Markets assigned roughly 89.5% to 92% odds to a 25-basis-point Federal Reserve rate increase, while higher long-term yields raised borrowing costs for households, companies and governments. Japan's debt exceeds 200% of gross domestic product, and analysts identified France as the most vulnerable major economy because of its fiscal deficits, debt burden and reliance on external capital. Bessent attributed higher U.S. long-term borrowing costs to global factors and fiscal pressures, defended Treasury debt buybacks as a liquidity measure, cited improved income and poverty data, and said he would work with House Speaker Mike Johnson on President Trump's proposed $5,000 payments if congressional approval is required.