
4 days · 3 summary articles
Bond yields hit post-2008 highs as BoE warns of financial stability risks from energy and AI debt surge
Eurozone inflation hits 3.8% as energy prices surge on war-driven supply disruptions
Global bond yields hit multi-year highs as US, European borrowing costs surge
Global bond prices fell further on Saturday, pushing yields to levels unseen since the 2008 financial crisis as energy prices surged and financial stability risks mounted, according to the Bank of England’s Financial Policy Committee. The committee warned that the re-escalation of conflict in Iran and rising oil and gas prices are prolonging negative supply shocks, increasing the likelihood that interconnected financial vulnerabilities will crystallize .
European Central Bank President Christine Lagarde told the European Parliament on Saturday that higher market interest rates will weigh more heavily on economic demand than previously forecast, slowing GDP growth but also dampening inflation. She advocated for a balanced monetary policy response, noting that rising financing costs are already doing some of the work typically achieved by central bank rate hikes .
The Bank of England also flagged risks from the rapid increase in AI-related debt issuance, which Morgan Stanley estimated at $450 billion globally in early September, double the 2025 total. The FPC cautioned that while markets have so far remained orderly, a significant shock could trigger a sharper repricing of assets .
In Estonia, economist Raul Eamets said inflation accelerated to 3 percent in September, driven by rising energy costs and disruptions to global shipping routes, including Houthi blockades in the Red Sea. He expects inflation to persist through autumn as demand for heating and electricity grows .
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