Brent crude, the international oil benchmark, jumped as much as 1.8pc to more than $102 a barrel – about $55 more than a barrel cost at this time last year.
Michael Bell, an analyst at RBC Bluebay, said: “Bonds are selling off globally and concerns about the fiscal trajectory for several key economies are contributing towards that today, along with a move higher in oil prices.”
Lloyd Harris, the head of fixed income at Premier Miton, said: “All rates markets are selling off. It’s oil up.”
The biggest leap in borrowing costs was in France after the head of its central bank ruled out an intervention by the European Central Bank (ECB) to support its creaking public finances.
The yield on France’s 30-year bonds climbed at its fastest pace in 19 months after Emmanuel Moulin, the governor of the Bank of France, insisted there was no need for a bailout of Europe’s second-largest economy.
French borrowing costs have surged over concerns that its government will not take control of mounting debts, with candidates for next year’s presidential election making ever greater spending promises.
Marine Le Pen, the front-runner to replace Emmanuel Macron, has urged the ECB to intervene.
Mr Moulin, meanwhile, criticised what he called “Trump-style” threats against him from Jean-Luc Mélenchon, the Left-wing presidential candidate.
The politician accused the governor of “acts of treason” for warning about the fiscal risks facing France.
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