Markets fall as bond sell-off spooks investors – business live – business live

Markets fall as bond sell-off spooks investors – business live – business live

Traders on the floor of the New York Stock Exchange last night Photograph: Courtney Crow/AP

Good morning, and welcome to our rolling coverage of the world economy, the financial markets, the eurozone and business.

World markets are roiled today as a surge in government bond yields triggered a sea of red across on Wall Street.

Sovereign bond prices fell across the board yesterday, driving up the yield (or interest rate) on the bonds. There were striking moves in the US, where the 10-year Treasury bond yield jumped to 1.5% for the first time in a year.

The bond selloff suggests investors are anticipating that the economic recovery this year will push up inflation, especially with the Biden White House planning a new $1.9trn stimulus drive.

That could force central banks to tighten monetary policy, ending the money-printing stimulus packages which have helped markets recover from last March's crash.

Last night, the tech-centred Nasdaq plunged by 3.5% - it's worst day since October - with the Dow sliding 1.75% from Wednesday's record high.

Asia-Pacific markets have slumped overnight, and we're expecting losses in Europe this morning. The FTSE 100 index of blue-chip shares in London is on track for a 1%+ fall.

One alarming thing about