Fears that US deficit is unsustainable also drive UK 30-year gilt yields briefly above 6% for first time since 1998

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The global bond sell-off intensified on Thursday, driving 10-year US government borrowing costs to their highest level in 24 years in a frantic day’s trading.

The threat of a renewed round of inflation from the persistently high cost of oil has spooked investors on both sides of the Atlantic, with central banks expected to raise interest rates in the coming months to prevent price increases from becoming embedded.