Look Out for Sovereign-Bond Volatility

With countries' economic outlooks diverging, something has to give.

A good credit?

Photographer: Giuseppe Cacace/AFP/Getty Images

Sovereign bonds have been full of surprises this year: From the U.S. to Spain, yields are declining further after confounding investors' expectations by staying low for most of 2014. It's a trend that could be setting markets up for greater volatility in 2015.

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