I would like to come back as the bond market. You can intimidate everybody
For a long time, the joke did not appear to be ageing well. Bond markets were not intimidating anybody as central banks mopped up huge amounts of debt and investors fell over themselves to lend to governments – sometimes even at negative rates.
But all this has now changed.
In many ways, the puzzle is not that bond yields should recently have risen but rather that they should have stayed so low for so long. In the whole history of bond markets over hundreds of years, there has been no precedent for yields being this low.
Median maturity of all government debt is set to be less than one year by March 2022.
Roger Bootle Telegraph 7 March 2021
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