Global bond sell-off intensifies as US-Iran tensions stoke inflation fears
A global sell-off of government bonds has intensified, pushing UK borrowing costs to their highest levels since 2008. The market volatility is driven by inflation fears and geopolitical tensions between the US and Iran, complicating the UK government's upcoming budget planning.
Why it matters
Increased borrowing costs limit government fiscal flexibility and signal broader economic instability in global financial markets.
Investors across major markets have been dumping bonds in recent days amid fears about inflation and spiralling deficits. Investors across major markets have been dumping bonds in recent days amid fears about inflation and spiralling deficits. Bonds Global bond sell-off intensifies as US-Iran tensions stoke inflation fears UK borrowing costs driven up, adding to challenges facing John Healey as he prepares for first budget
Prefer the Guardian on Google The global government bond sell-off resumed on Wednesday, driving up the UK’s borrowing costs and exacerbating the challenges facing John Healey as he prepares his first budget.
The yield – effectively the interest rate – on 10-year UK government bonds, or gilts, jumped to just below 5.3% in early trading: its highest level since mid-2008.
Investors across major markets have been dumping bonds in recent days amid fears about inflation and spiralling deficits.
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