In the past week, government bond markets have finally done what some economists have been predicting for a while. Following a prolonged period of exceptionally low volatility, with US 10 year note yields becalmed at about 1.9 per cent, we have seen a fairly sharp sell-off, taking yields to around 2.3 per cent. Although this is a very minor blip in the large scheme of things, it does raise the question of whether the era of exceptionally low bond yields, or the government bond “bubble” as some analysts call it, may finally be coming to an end. Read more