Where is the inflection point for bond markets?

Iain Stealey, manager of the JPM Global Bond Opportunities fund, argues that bonds can still do well amid higher volatility

There are a few factors at work driving global bond markets towards what we think is an interesting inflection point. In April, investors seemed to awaken to the realisation that a yield of .04% on German 10-year bunds was far too low, releasing the pressure valve to send yields soaring back up. That in turn saw the sharp retracement in global benchmark yields and a return of investor consensus to focus on the US 10-year treasury as the global barometer for bonds. The US Federal Reserve has clearly telegraphed their intent to move slowly and gradually on rate increases. They have also...