Oliver's Insights: The super cycle bear market in bonds and the return of “bond vigilantes”  – implications for investors

The key points are:

  • Bond yields are being pushed higher by concerns about inflation, high public debt, rising corporate borrowing, rising Japanese bond yields and increasing economic uncertainty.

  • This is part of a super cycle rise in bond yields that started in 2020, partly reversing the super cycle from the 1980s.

  • The rising trend in bond yields could dampen other asset classes as it leads to a higher yield structure in the economy. This includes residential property.

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