Outlier among major debt markets
The sudden yield “taper tantrum” that began in the middle of February 2021 and took markets by surprise seems to have settled. While they remain elevated, investors appear to have accepted current yield levels as the new normal — at least for now. The key question now dominating the financial news cycle is whether these higher yields herald any inflationary concerns.
Against this backdrop, most government bond markets saw sharp selloffs in the first quarter, as prices dropped in proportion to the yield increase. However, there was one notable outlier — China.
