Stock markets fell around the world on Monday and bond yields rose as US inflation increased the possibility that global central banks may tighten policy and lift interest rates more aggressively than had been expected.

Yields on 10-year US Treasury debt securities hit a four-year high of 2.885%.

The Dow Jones Industrial Average fell 4.6%, the S&P 500 lost 4.10% and the Nasdaq Composite fell 3.78%.

Futures markets have priced in the risk of three or more rate rises by the US Federal Reserve this year.

Friday’s US payrolls report showed wages growing at their fastest pace in more than eight years, fuelling expectations for inflation and interest rates.

That sparked the global sell-off that continued on Monday .

“This added fuel to a bond market sell-off, pushing US 10 year Treasury bond yields closer to the magic 3 percent level, which will only increase borrowing costs for corporates following years of cheap financing, thus ushering equities further from recent highs,” Mike van Dulken, head of research at Accendo Markets, told Reuters.