The bond sell-off: Is the bull market finally at an end?

The longest losing streak for 10-year US treasuries since 2006, coupled with a marked rise in other ‘safe haven' bond yields, poses some difficult questions for bond investors.

Having remained remarkably calm since the start of the year, benchmark treasuries and gilts have sold off sharply this week as the prospect of improving US growth appears to take QE3 off the table. Benchmark 10-year treasuries have seen yields rise from 2% to 2.3% in just three days, as part of a seven day losing streak that Bloomberg labels the worst since 2006, while 10-year gilt yields have also spiked to 2.4% - not helped by Fitch warning on the UK's AAA rating or chancellor George Osborne's mooted plans for a 100-year UK bond. Fund managers and asset allocators had been warning o...