Global bond sell-off resumes as surging oil prices stoke fears about inflation
Rising oil prices driven by Middle East tensions have triggered a global sell-off in government bonds. Central banks, including the ECB, are responding with interest rate hikes to combat persistent inflation.
Why it matters
The combination of high energy costs and rising borrowing rates threatens to slow global economic growth and increase financial instability.
Surging oil prices caused by intensifying tensions in the Middle East have fuelled inflation concerns across markets including South Korea. Surging oil prices caused by intensifying tensions in the Middle East have fuelled inflation concerns across markets including South Korea. Bonds Global bond sell-off resumes as surging oil prices stoke fears about inflation Crude jumps above $107 a barrel amid concerns over Middle East conflict and out-of-control government borrowing
Prefer the Guardian on Google Nervous investors across big economies have been dumping government bonds, driving up the cost of borrowing, as surging oil prices amplified fears about rising inflation.
The cost of a barrel of oil jumped 6% to above $107 on Thursday amid concerns that advances by Houthi rebels along the Red Sea coast in Yemen could choke off Saudi crude exports.
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