Skip to main content

We expect loose monetary policy to keep a lid on bond yields

The RBA’s decision earlier today to extend its bond purchases, despite considerable improvement in the economic outlook, is just the latest sign that major central banks are likely to take a much more cautious approach to tightening monetary policy than they did in the past. This supports our view that the yields of 10-year developed market (DM) government bonds won’t rise much between now and the end of 2022.

Become a client to read more

This is premium content that requires an active Capital Economics subscription to view.

Already have an account?

You may already have access to this premium content as part of a paid subscription.

Sign in to read the content in full or get details of how you can access it

Register for free

Sign up for a free account to:

  • Unlock additional content
  • Register for Capital Economics events
  • Receive email updates and economist-curated newsletters
  • Request a free trial of our services


Get access