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The next bond rout is set to be bigger than Italy’s wobble

Investors are beginning to view higher-quality bonds more favourably, which could mean the beginning of a 'risk-off' period

The next bond rout is set to be bigger than Italy’s wobble
Photo: iStockphoto

Now, that was a bond rout.

One week ago, concerns that Italy would leave the eurozone caused yields on its two-year notes to surge as high as 2.7%, as investors fled its bond markets for safer assets. The yield had been negative just two weeks earlier. (Bond prices and yields move in the opposite direction.)

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