Bond Hike Causing Volatility
A hike in long-term government bond yields has been the primary cause of market volatility that we have been expecting for some time. The rise in interest rates, mainly in response to a perceived threat of higher inflation, has kept the predominantly good economic news in check. Manufacturing has improved to a three-year high and coronavirus vaccinations are slowly changing the pandemic outlook. We see the recent interest rate moves as a type of “reset” as the economy recover