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Oil shock pushes IMF to flag soaring global borrowing costs

UK 10-year gilt yields climbed about 4 basis points to near 5.27 percent after earlier spikes, as Brent crude rose above $95 per barrel on energy supply disruptions.

Reported · Written up by our desk · Energy

The IMF warned at the G20 that a rise in global borrowing costs is a “particular concern,” citing a jump in UK bond yields that were last seen during the financial crisis, according to OilPrice.

OilPrice reports the yield on the 10-year UK gilt climbed four basis points on Wednesday morning to near 5.27 percent, after the prior day’s rally saw yields spike by as much as 15 basis points. Longer-term gilt yields were also higher, up five basis points to almost 5.89 percent, nearing Tuesday’s highs.

The article says similar moves are occurring elsewhere, with India’s 10-year bond yield topping 7 percent and Australia’s 10-year yield surging to a 15-year high above 5.2 percent.

OilPrice links the sell-off to higher energy prices, saying oil and gas supply disruptions following the Iran war helped drive the pressure. Brent crude, the international benchmark, climbed above $95 per barrel on Wednesday, its highest level in nearly six weeks.

Latest closeWTI crude $90.70 ▲0.5%|Brent $95.32 ▲0.7%

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