Global bond sell-off intensifies, as UK long-term borrowing costs pass 6%

Global bond markets are in turmoil as worries grow that the U.S. deficit may be unsustainable, pushing UK long‑term borrowing costs to a 28‑year high. Investors fear a new wave of inflation driven by high oil prices, prompting expectations that central banks will raise interest rates soon to curb rising prices. The spike in bond yields reflects heightened uncertainty about future monetary policy and the potential impact on inflation dynamics.

Fears that US deficit is unsustainable drive Britain’s 30-year bond yield to level not seen since 1998Business live – latest updatesThe turmoil in global bond markets has intensified amid fears the US deficit is reaching unsustainable levels, helping drive UK long-term borrowing costs to a 28-year high.The threat of a renewed round of inflation from the persistently high cost of oil has spooked investors, who believe central banks will be forced to raise interest rates in the coming months to prevent price increases from becoming embedded. Continue reading...