(Reuters) – British shares ended lower on Monday as investors fled risky assets after last week’s U.S. jobs report reinforced the view that the Federal Reserve will be cautious about cutting interest rates this year.

Blue-chip fell 0.3%, while the domestic-focused mid-cap index fell 0.1%.

Global stocks fell and bond yields remained elevated after Friday’s data showed U.S. job growth unexpectedly accelerated in December and the unemployment rate fell to 4.1%.

U.S. government bond yields hit their highest levels in months, with investors pricing in just one interest rate cut by the Fed this year.

British bonds have been at the center of a recent sell-off in the global bond market, with a piercing rise in borrowing costs raising concerns about the UK’s fiscal stability. The yield on the 30-year gold note rose to its highest level in 27 years, while the yield on the 10-year note rose to its highest level since 2008.

British mid-cap stocks fell almost 3% last week on concerns that UK economic growth will come under pressure from higher taxes and a drag on spending.

Inflation data on both sides of the Atlantic, as well as quarterly UK GDP estimates, will be the most critical at the end of the week.

The energy sector was an outlier, rising 1.4% as oil prices rose on expectations that broader U.S. sanctions on Russian crude would force buyers in India and China to look for other suppliers. [O/R]

Higher prices weighed on airline shares, with IAG, Wizz Air and easyJet (LON :), the owner of British Airways, falling between 2.2% and 3.6%.

Biotechnology company Oxford Nanopore Technologies rose 8.9% after forecasting full-year revenue of about 183 million pounds ($222.27 million), up from 169.7 million a year earlier.

PageGroup fell 3.2% after the recruitment company issued its second profit warning in six months.