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John Authers

What Comes After a Week That Shook the World

The ‘Ice Age’ for bond yields is melting. The ripple effects mean that the rules most investors have learned to live by no longer apply.

The post-Volcker, multi-generational trend of low yields is over.

The post-Volcker, multi-generational trend of low yields is over.

Photographer: Stefani Reynolds/AFP/Getty

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We’re living through arguably the most truly global attempt to tighten financial conditions in memory. This is shifting the tectonic plates beneath the world economy, and threatens dangerous developments in society and in politics as we all try to adapt. And yet what strikes the eye after a week of market landmarks and aggressive interventions by central banks is the continuing discord. There’s a broad acknowledgement that the future involves tighter conditions to combat inflation, and with it an elevated risk of recession; but even though these sobering things are now widely accepted, deep differences remain. This is an attempt to sum up the most important developments after an epochal week.