What's the real story with bonds?

Rocketing US bond yields over the past few months has been met with nods of satisfaction from commentators who have been recently been parading the 'bond bubble' banner. But there are other explanations for poor bond performance, namely that it is a normal response to an improving macroeconomic situation. As an Invesco Perpetual analysis says: "Since mid-March, US 10-year bond yields have risen by around 20 basis points and the equity market has risen by 9%: that conjunction of developments is exactly what one would expect in an environment of improving economic growth." However, not eve...