Government borrowing worldwide has reached an unprecedented level, with the value of sovereign bonds issued through bank placements in the first half of 2026 hitting a record $504 billion. This figure only covers bonds sold by governments via banks and excludes traditional auction‑based issues, which are common in Europe but not used by the United States, whose Treasury securities are sold solely through direct auctions.
It is the fourth consecutive year that borrowing through this channel has risen, surpassing even the emergency spending levels seen in the first half of 2020 during the COVID‑19 pandemic. Italy leads the list of borrowers, having raised about $81 billion since the start of the year, followed by Germany with $16.1 billion. The United Kingdom, Belgium and Serbia have each recorded their largest sovereign bond issuances to date.
The global debt crisis is intensifying as governments increasingly rely on bank‑mediated bond placements to fund their deficits.