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Era of Low Yields Confronts Central Banks Focused on Inflation

  • Bank of England leads the way with its surprise rate hike
  • Faster pace of tightening in 2022 should challenge low yields
Updated on

Investors are girding for a significant leap higher in global bond yields as the dust settles on this week’s glut of central-bank decisions -- it’s just a question of when.

Having set the stage for a more restrictive monetary backdrop over the coming year, investors warn that the present level of bond yields looks too low, should central banks have to up the pace of rate hikes in order to bolster their inflation fighting bona fides.