Inflation fears grip markets as bonds, stocks dive

By Koh Gui Qing and Saikat Chatterjee NEW YORK (Reuters) – Global stocks and government bonds plunged again on Monday and the dollar hit two-decade highs as red-hot U.S. inflation fuelled worries about even more aggressive policy tightening in a big week for central banks. Underscoring concerns that tighter monetary conditions may cool the U.S. economy to the point of bringing on a recession, the gap between U.S. two- and 10-year Treasury yields inverted on Monday for the first time since April, an occurrence that can herald an economic contraction. The latest sell-off is almost certain to pus…

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