Global bond sell-off intensifies, as UK long-term borrowing costs pass 6%

Fears that US deficit is unsustainable drive Britain's 30-year bond yield to level not seen since 1998

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The turmoil in global bond markets has intensified amid fears the US deficit is reaching unsustainable levels, helping drive UK long-term borrowing costs to a 28-year high.

The threat of a renewed round of inflation from the persistently high cost of oil has spooked investors, who believe central banks will be forced to raise interest rates in the coming months to prevent price increases from becoming embedded.