What does the future hold for yields?

Government bond yields are being closely watched by investors. With central bank support through quantitative easing (QE), they are likely to remain low in the short term, but what is the future for yields? Over a longer time horizon, the likelihood is that yields will drift higher. The timing of this is uncertain and such a move could prove dangerous for investors not dynamic enough in their asset allocations. Despite market talk of the supposed ‘great rotation’ from bonds into equities, there still seems to be a race to zero yields on some short-term sovereign paper. A look at mu...