A sharp selloff in the world's biggest government bond markets and a continued rise in the dollar sent shockwaves through financial markets, with pain seen deepening as uncertainty grows over U.S. President-elect Donald Trump's policies.

Markets see just one rate cut coming in 2025 amid a confluence of strong economic data and the potential for Trump's economic plans to stoke inflation.

Rachel Reeves is facing her first major test as Britain's finance minister after the government's borrowing costs jumped sharply this week and the pound tumbled, potentially forcing her to cut future spending.

In the US, the Treasury market has been hit by concerns that president-elect Donald Trump will borrow freely and cut taxes. Driving these moves are government bond investors who are once again taking up the role of enforcers of fiscal discipline,

The selloffs that keep flaring in the world’s bond markets are pushing yields toward key thresholds amid escalating worries about elevated inflation, tempestuous politics and swelling government debts.

Dreyfuss LONDON/NEW YORK (Reuters) -A sharp selloff in some of the world's biggest government bond markets and a continued rise in the dollar sent shockwaves through financial markets, with the pain seen deepening as uncertainty grows over U.