Markets slide as inflation fears trigger global bond sell-off – business live
Rolling coverage of the latest economic and financial news The Guardian view on the global bond shock: Andy Burnham should take note The head of the IMF has warned that the rise in bond yields among advanced economies threatens to cause economic pain for developing nations. Kristalina Georgieva, managing director of the IMF, told the gathering of G20 finance ministers and central bank governors…
Global bond yields have surged to multi-year highs, triggering a widespread sell-off in markets around the world. The head of the International Monetary Fund (IMF), Kristalina Georgieva, has warned that this rise in borrowing costs could cause economic hardship for developing nations. She addressed the G20 finance ministers and central bank governors in North Carolina, emphasizing the "particular concern" this presents.
While progress in the sovereign debt landscape for emerging and low-income countries had been improving due to domestic policies and international cooperation, the persistent risks and uncertainty from the global interest rate hike call for stricter policy measures. The escalation in key advanced economy yields lifts most of the world's yield curves upward, significantly reversing the hard-won spread compression achieved in many emerging markets.
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