Markets slide as inflation fears trigger global bond sell-off – business live

- 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 in North Carolina that the rise in global borrowing costs was a “particular concern”.

The sovereign debt landscape for emerging and low-income countries has gradually improved in recent years, thanks to domestic policy efforts and international cooperation. But progress has been uneven, and persistent risks and uncertainty in the global economy, including spillovers from the significant increase in yields in advanced economies, call for policy discipline and underscore the importance of building buffers.

The increase in global interest rates is of particular concern. As key advanced economy yields rise to multi-year highs, they lift most of the world’s yield curves up with them. In some emerging markets this more than fully offsets hard-won spread compression.