Global bonds slump as Trump prompts inflation fears

Sell-offs continue as investors predict tax cuts and infrastructure spending will lead to higher interest rates

Fears about the inflationary potential of Donald Trump's planned tax cuts and infrastructure spending have sent shock waves through the world's bond markets, as investors take fright at the prospect of higher than expected interest rates in the years ahead.

Central banks are braced to suffer fresh losses on their vast holdings of government debt after the sell-off that saw $1tn wiped off the value of bonds last week intensified on Monday.

Related: Dow hits record high after Trump win but investors warn of volatility