Surging oil prices and geopolitical instability in the Middle East are fueling a global bond sell-off, forcing central banks to tighten policy as borrowing costs reach levels not seen in decades.
Global bond markets are reeling as oil prices climb above $107 per barrel following Houthi rebel activity in the Red Sea. The resulting inflation fears have pushed 10-year Treasury yields to 5.3pc, a level unseen since 2007, while the ECB hiked rates to 2.5pc to combat energy-driven price pressures.
Borrowing costs are surging due to a sharp rise in oil prices, which has reignited inflation fears and forced central banks to consider or implement interest rate hikes.