Warnings bond and equity market sell-off has further to run

Concerns over central bank policy and higher-than-expected inflation caused global bond markets to sell off on 29 January with 10-year Treasury yields rising to 2.73%, their highest point since April 2014, while two-year Treasury yields reached the highest level since September 2008, climbing to 2.16%. Furthermore, in Europe five-year German bund yields moved into positive territory for the first time since November 2015. Fears of contagion risk have subsequently spread to equity markets with the S&P 500 suffering its worst weekly performance in two years last week, falling 3.9%, whil...