A sharp selloff in the world's biggest government bond markets and a continued rise in the dollar sent shockwaves through financial markets, with pain seen deepening as uncertainty grows over U.S. President-elect Donald Trump's policies.

Markets see just one rate cut coming in 2025 amid strong economic data and the potential for Trump's economic plans to stoke inflation.

There’s room for stock markets to fall further as bond yields approach levels that have been painful for equities in recent years.

British markets are among the biggest victims of a global bond selloff that has spilled over into currencies and stocks this week.

In the US, the Treasury market has been hit by concerns that president-elect Donald Trump will borrow freely and cut taxes. Driving these moves are government bond investors who are once again taking up the role of enforcers of fiscal discipline,

The selloffs that keep flaring in the world’s bond markets are pushing yields toward key thresholds amid escalating worries about elevated inflation, tempestuous politics and swelling government debts.