, Columnist
Pax Volckeriana Is Done. Welcome to the New Order
The secular trend that led to ever-lower bond yields starting in the 1980s has ended. How long this new regime will last isn’t yet written.
Paul Volcker, pictured above in Singapore in 2010, set monetary conditions on course for decades. That era is over.
Photograph: Bloomberg
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Could the worst be over? Treasury yields have dropped with a resounding thud as they reopened after a long holiday weekend in the US, with the benchmark 10-year falling some 17 basis points. Is it possible that we have seen the peak in bond yields? There’s a case to argue that we have — but, as always in the bond market, you have to be very careful to stipulate the time period.