'Disorderly bond yield jump' now biggest global risk

The Bank of England's Andrew Haldane has said a possible sharp rise in bond yields represents the biggest risk for financial markets at present.

Speaking to the Treasury Select Committee, Haldane (pictured), executive director for financial stability at the Bank, said he is concerned that a deflation of the bond "bubble" may prove painful and all too sudden for markets to cope with. "A disorderly reversion of government bond yields" is the biggest risk to global financial stability, Haldane told the committee. The recent spike in bond yields, which saw global bonds suffer their fourth worst month in 20 years in May, came after US Federal Reserve chairman Ben Bernanke flagged a possible end to quantitative easing later on this ...