Bill Gross, manager of the world's largest bond fund, has compared the US economy to a supernova on the path to extinction as it has become too reliant on credit and real growth is being eroded.
US treasury 10 year yields have climbed past 2% for the first time in nine months, as better than expected data in the US helped bolster risk asset sentiment.
Fixed income remains popular with investors despite a very recent shift towards equities, but which bonds currently pose the greatest risk to investors?
M&G's Mike Riddell has sold out of his position in 5- and 7-year Italian government bonds ahead of a possible sell-off following the country's general election.
The future stability of the global economy has been threatened by the Bank of England and six of the largest central banks issuing close to $6trn of "essentially free" money since the financial crisis, according to PIMCO's Bill Gross.
The decision by Mario Monti to stand down as Italian Prime Minister earlier than planned has caused markets to fall across Europe today, and led to a spike in Italian bond yields.
Global fund management groups such as BlackRock, T Rowe Price and Federated Investors are rushing to set up ‘ultra-short' bond funds to lure investors away from the money markets.
7IM's Alex Scott has begun switching out of corporate debt in favour of Spanish and Italian bonds on a large proportion of the group's funds, ahead of any rise in government bond yields.
The Dow shed more than 300 points in yesterday's session as investors questioned re-elected President Barack Obama's commitment to dealing with the US fiscal cliff.
Investment veteran Jim Rogers did not vote for either leading candidate in the US presidential race as he does not think either man can save the economy.