European Bond Rout Deepens as Gas Prices Surge

A selloff in European and UK government bonds intensified on Wednesday, driven by another jump in natural gas prices that stoked fresh investor concerns over inflation. The slide in bond markets continued as rising energy costs reinforced fears that consumer prices will stay elevated for longer. Governments across the region have been grappling with the economic fallout of expensive fuel, which pressures households and businesses alike. Higher gas prices feed directly into inflation, eroding the real returns on fixed-income assets. As a result, investors have been dumping government bonds, pushing their yields higher. The move reflects a broader anxiety that central banks may need to keep interest rates higher for an extended period to bring price growth under control. With no immediate relief in sight for energy costs, market watchers expect volatility to persist.