Is this 'the beginning of the end' for multi-decade bond bull run?

Gilt yields returned to pre-referendum levels

Government bonds have enjoyed a strong run over the past three decades, supported by accommodative monetary policies. But investors are beginning to question whether this rally may finally be over as the focus switches to fiscal stimulus to prop up struggling global economies.

In particular, UK gilt yields have fallen in recent months from 1.01% on the day of the EU referendum, to a record low of 0.52% on 12 August. This followed the Bank of England's announcement of its first interest rate cut in seven years, from 0.5% to 0.25%, and a £70bn extension of its bond-buying programme. However, yields have now risen back to pre-referendum levels as investors' worries over the UK economy were reignited when Prime Minister Theresa May hinted Britain could be heading for a 'hard' Brexit, while inflation fears grew as the CPI measure jumped to a 22-month high of 1% ...