Is the bond bull market almost over?

Could this finally be the end of the bond bull market, after a 35-year run? If it is, get ready for a big shift in the investment landscape.

817-Volcker-1200

Paul Volcker yields have been on a downward trend since he was at the helm

"From Washington to Tokyo, the message is loud and clear," says Marcus Ashworth at Bloomberg Gadfly. "Central banks want steeper yield curves. They want inflation, and inflation is coming." The catalyst for change is likely to be a Federal Reserve rate rise in December, he says. "The Street has spotted it, and so has the relatively smart money." Morgan Stanley and Goldman Sachs both expect ten-year rates to rise, says Ashworth, while big investors such as bond-fund giant Pimco, plus M&G and Legal & General, have been "cutting their holdings of longer-dated bonds".

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Giselle Garcia is a Brazilian journalist currently studying for a master's degree in financial journalism at City University in London. Her focus is on international politics and markets.