Bond market rout deepens as investors fear ‘stagflationary shock’ from higher oil prices – business live

Rolling coverage of the latest economic and financial news, as rising oil price sours sentiment in the markets and drive up bond yields

The head of the International Monetary Fund has said that a sell-off in global bond markets was reflecting the impact of higher oil prices.

IMF managing director Kristalina Georgieva was speaking as she arrived for a meeting of G7 finance ministers in Paris, Reuters reports.

“A combination of political turmoil and renewed gains for oil has been kryptonite for hopes of a new FTSE 100 rally.

Of course, the selling has not been confined to the UK, and continental indices are registering heavier losses as oil lurches higher once again. The market rally is rapidly coming to grips with the reality of the situation in the Middle East and in the global oil market, and it is not going to be pretty.”