Bond market Utopia or ill-prepared for a market slide?

The prolonged rally in government bonds began in 1981. This came after yet another oil price shock and changes to wage inflation. Recognising that such conditions could not be allowed to persist, politicians and central bankers joined forces to hammer out a strategy, which would kill off inflation. The initial stance was to choke ever-growing wage demands by restraint and then via a fair and well-defined pay/productivity plan. An example of this was the Margaret Thatcher government. The UK trade unions were muted and their leadership slowly passed from the militant to the more balanced ...