Government bond falls break resistance levels

The recent volatility across asset classes has led to a flight to quality trade in government bond m...

The recent volatility across asset classes has led to a flight to quality trade in government bond markets. Steep falls in the markets that seemed impervious to the build up of negative news have resulted in a reversal in fortunes for safe haven instruments that until the middle of May had seemed stuck in a decidedly bearish framework. In a matter of days, 10-year government bond yields in the major markets have fallen 20 basis points and broken through resistance levels that were in place since the beginning of the year. This may not sound noteworthy next to the 12% fall in emerging ...