Global borrowing costs hit fresh highs on oil, AI and inflation

John Canavan, lead analyst at Oxford Economics, told the BBC the inflation risk from higher oil prices, along with high levels of government debt and uncertainty around the vast sums being invested into AI - and when that will pay off - were all playing a part in higher borrowing costs.

They said the situation did not represent a "bond market crisis", but added: "There are rational reasons for investors to demand higher returns on long-term government debt: greater geopolitical and inflation uncertainty, questions over US monetary policy and unsustainable fiscal positions.

Long-term borrowing costs across some of the world's biggest economies have hit fresh highs due to concerns over inflation, government debt levels, and spending on Artificial Intelligence (AI).