Bond yields at levels not seen since 2007-08 global crisis
Traders are nervously awaiting US consumer price data due later on Friday. (Photo: AFP)
LONDON - High oil prices and US diesel prices at record levels kept inflation fears at the fore on Friday, ratcheting up expectations that more central banks will have to hike interest rates despite the risk of weighing on economic growth.All eyes are on US consumer prices later Friday that could see the Federal Reserve raise rates as soon as next week, a move increasingly expected by investors after strong producer inflation data this week.
It comes a day after the European Central Bank raised eurozone borrowing costs, citing the impact on energy costs from the US-Iran war that escalated sharply in recent days.
While oil prices retreated Friday, they remain at levels deemed far too high by central banks hoping to keep inflation pressures from becoming entrenched in the wider economy.
