Rachel Reeves is facing her first major test as Britain's finance minister after the government's borrowing costs jumped sharply this week and the pound tumbled, potentially forcing her to cut future spending.

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

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.

Dreyfuss LONDON/NEW YORK (Reuters) - A sharp selloff in some of the world's biggest government bond markets and a continued rise in the dollar sent shockwaves through financial markets, with the pain seen deepening as uncertainty grows over U.

The biggest story in finance is that longer-term bond yields are rising. The yield on the 10-year Treasury, at about 4.7%, is the highest since April, even though the Federal Reserve’s overnight rate is now a percentage point lower than it was then.

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