A recipe for disaster? 'Coiled spring' bond market falls 'just the beginning', experts warn
Low bond yields and vaccine roll-out could 'spell trouble'
Bond markets are ready to twitch into action at the first sign of inflation, according to AJ Bell
A combination of record low bond yields, inflationary expectations and the continuing vaccine roll-out could "spell trouble" for bond investors, according to several investment professionals, who warn that ultra-loose monetary policy over the past decade has left the asset class "a coiled spring" susceptible to further price falls as prospects for the global economy improve.
According to data from AJ Bell, 10-year gilt yields have returned to pre-pandemic levels for the first time since March last year, having risen from 0.2% to 0.75% since the start of 2021. Investment...
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