Nature is healing – government bond yields are turning positive again

Negative bond yields are finally coming to an end as central banks change tack. But can the markets cope? John Stepek looks at what might come next.

Christine Lagarde of the ECB
Christine Lagarde: the ECB is no longer erring on the side of economic caution
(Image credit: © Thomas Lohnes/Getty Images)

Years of emergency monetary policy – of interest rates near zero and rampant money printing by central banks – have created plenty of notable distortions in the markets.

Perhaps the plain weirdest of these distortions was the phenomenon of the negative bond yield.

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John Stepek

John Stepek is a senior reporter at Bloomberg News and a former editor of MoneyWeek magazine. He graduated from Strathclyde University with a degree in psychology in 1996 and has always been fascinated by the gap between the way the market works in theory and the way it works in practice, and by how our deep-rooted instincts work against our best interests as investors.

He started out in journalism by writing articles about the specific business challenges facing family firms. In 2003, he took a job on the finance desk of Teletext, where he spent two years covering the markets and breaking financial news.

His work has been published in Families in Business, Shares magazine, Spear's Magazine, The Sunday Times, and The Spectator among others. He has also appeared as an expert commentator on BBC Radio 4's Today programme, BBC Radio Scotland, Newsnight, Daily Politics and Bloomberg. His first book, on contrarian investing, The Sceptical Investor, was released in March 2019. You can follow John on Twitter at @john_stepek.