Global borrowing costs are climbing, creating headwinds for businesses and financial markets.

The 10-year U.S. Treasury yield, the benchmark “risk-free” interest rate, rose to 4.27% — its highest level since September 3, according to TradingView. As a baseline for loans and financing worldwide, the yield influences everything from mortgages to corporate debt. Foreign holders, including China and Japan, own trillions in Treasuries, meaning higher yields push global borrowing costs upward.

Rising yields tighten financial conditions, potentially slowing investment, spending, and appetite for risk. High-beta assets, including bitcoin, other cryptocurrencies, and equities, are particularly sensitive. Bitcoin fell more than 1.5% to $91,000 in early Asian trading, while Nasdaq futures dropped over 1.6%.

Traders cited renewed geopolitical tensions, including President Donald Trump’s Greenland-related tariff threats against Europe, as a catalyst. Trump warned of a 10% levy on imports from eight European nations starting Feb. 1, rising to 25% on June 1 unless a deal is reached. European leaders criticized the plan, with speculation about retaliatory U.S. asset sales, though most holdings are privately owned.

Yields are also rising abroad. Japanese government bonds jumped after Prime Minister Sanae Takaichi proposed food tax cuts. Across advanced economies, higher fiscal spending and increased bond issuance are driving interest rates higher, signaling broader financial tightening worldwide.