0814 GMT - The jump in oil prices is turning into a policy rate problem, Tickmill Group's Patrick Munnelly says in a research note. Higher oil prices, sticky inflation expectations, resilient activity and heavy sovereign financing needs are pushing global discount rates higher, Munnelly says. If energy prices remain elevated, central banks will have less room to ease and more reason to keep inflation risks front and center, he says. The average yield on a global bond gauge has now climbed above 4% for the first time since 2007, underlining the scale of the global rates reset, he notes. "This is no longer just a U.S. story," he writes.
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