The scale and speed of the sell-off in British assets rattled global markets, raising concerns about contagion as chaos in the major advanced economies adds to jitters over sharp interest rate hikes in the United States and elsewhere. , reports Reuters.

Following the presentation of Britain’s mini-budget on Friday, which included 45 billion pounds ($48 billion) in unfunded tax cuts, the pound fell to a record low, while British bond prices fell sharply, news.ro reported.

Signs of disruption were evident on Wednesday before the Bank of England (BoE) stepped in to calm markets.

Markets were already reeling from an inflation-induced shock to energy prices and a stronger dollar, weighing on the global economy and prompting a rare intervention by the Bank of Japan in currency markets last week.

“It’s like a sandcastle from which smaller and bigger pieces are starting to fall out all at once,” said Olivier Marceau, director of multi-asset investments and wealth management at Unigestion, referring to Maria’s contribution to the UK’s global stress.

“I think the UK is one of those parts… It just adds to the pain, adds to the stress.”

Worries about Britain’s new economic policy added to already heightened volatility, with falls in UK bond prices even spreading to safe-haven US Treasuries and top German bonds.

Global anxiety about the UK contagion is clearly growing.

Atlanta Federal Reserve President Raphael Bostick warned on Monday that events in the United Kingdom could lead to increased economic stress in Europe and the United States, and the International Monetary Fund on Tuesday reviewed Britain’s new fiscal plans.

US Treasury Secretary Janet Yellen said on Tuesday that the United States was monitoring developments in the UK, the Financial Times reported.

“There will be impacts, there will be correlations … some market volatility and then how that plays out in the global growth picture. The US is a largely sheltered economy … we’re much more insulated from a lot of global pressures, but at the same time we’re not completely immune to what’s happening in Europe, China and the UK,” said Paul Malloy, director at Vanguard.

PIMCO Chief Investment Officer Dan Iwaskin said that while he did not believe the developments in the UK posed significant systemic risks, they added volatility to already volatile markets.

As UK bond yields rose 1 percentage point in two days to a multi-year high, yields on 10-year US Treasuries and German bunds rose in turn.