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Bond sell-off is a foretaste of things to come


Bond sell-off is a foretaste of things to come
Thushka Maharaj
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Scott Rothstein/iStockPhoto / Getty Images
For many in bond markets, the sell-off across fixed-income assets since the start of the year might appear to be a bracing foretaste of things to come.
Markets are undergoing a pivotal shift. Where extraordinary support from central banks was a key driver for markets over the past nine months, economic fundamentals will take the lead this year. And bond market repricing sits at the nexus of this transition. ....

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Sharp bond sell-off shows market at odds with central banks on economic outlook


Sharp bond sell-off shows market at odds with central banks on economic outlook
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Chris Wattie/Reuters
The steady rise in bond yields since the beginning of the year went into overdrive this week, roiling markets and raising questions about whether central bankers are losing control of the narrative around the timeline for a postpandemic economic recovery.
Government bonds around the world sold off sharply, causing yields to jump to levels last seen in February, 2020. Bond prices and yields move in opposite directions, and investors tend to sell longer-dated bonds when they expect inflation to increase and interest rates to rise. ....

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