Why interest rates could stay low for the next 20 years

Global bond yields continue to crash through zero

"You let everybody know, but don't play with me, 'cause you're playing with fire," sang the Rolling Stones.

US Federal Reserve Chair Jerome Powell and other central bankers around the world appear to be singing the same tune. Translated, it means "low rates, long time". Letting everybody know Global bond yields are reaching new lows, in some cases crashing through zero. This reflects a realisation on the market's part that rates probably won't rise anytime soon. The reasoning behind this is a longer story. Last year, central banks had ceded some control of monetary policy to the markets, and market activity would govern the speed with which central banks raise rates, reduce their balan...