The benefits of a bond bear market

s the rise in bond yields and corresponding fall in prices bad news or good news? It depends on your perspective. In the past year yields on ten-year gilts have risen from 0.5% to a mid-June peak above 2.5%, though they have since slipped back below 2%. Yields on 30-year gilts have risen from less than 1% to over 2.5%, resulting in a capital loss of 20%. Given that these yields remain below those of the comparable US Treasuries, against the historic norm, it is likely that they will