A recipe for disaster? 'Coiled spring' bond market falls 'just the beginning', experts warn

Low bond yields and vaccine roll-out could 'spell trouble'

Lauren Mason
clock • 4 min read

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.

To continue reading this article...

Join Investment Week today

  • Unlimited access to real-time news, analysis and opinion from the investment industry, including the Sustainable Hub covering fund news from the ESG space
  • Get ahead of regulatory and technological changes affecting fund management
  • Important and breaking news stories selected by the editors delivered straight to your inbox each day
  • Weekly members-only newsletter with exclusive opinion pieces from leading industry experts
  • Be the first to hear about our extensive events schedule and awards programmes

Join now

 

Already an Investment Week
member?

Login

More on Bonds

Columbia Threadneedle converts European Strategic Bond fund to target high yield credit

Columbia Threadneedle converts European Strategic Bond fund to target high yield credit

Managed by Christopher Hult

Michael Nelson
clock 21 September 2026 • 1 min read
HSBC AM launches short duration bond fund for investors seeking income and liquidity

HSBC AM launches short duration bond fund for investors seeking income and liquidity

First active fixed income fund since 2017

clock 16 September 2026 • 2 min read
RBC Bluebay's Mike Bell: When will bonds be back?

RBC Bluebay's Mike Bell: When will bonds be back?

It has been five years since the last James Bond film came out. I remember clearly the emotion of going to see it at the cinema for the first time after Covid. I cried at the end.

Mike Bell
clock 15 September 2026 • 4 min read
Trustpilot