Skip to main content

Is the outlook really that bad for government bonds?

Government bonds are widely expected to have a rough ride in 2010 as central banks tighten monetary policy, fiscal strains continue to build and upward pressure on headline inflation fails to subside. Some, if not all, of these concerns may continue to weigh on markets to differing degrees for a while. But over time government bonds should do better than many expect. We think yields will generally drop back sharply in the second half of the year, if not before.

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