Bond yields around the world have surged since the European Central Bank hinted last month that its bond buying was coming to an end, a replay of the “taper tantrum” in 2013 when the Federal Reserve caught markets off guard with similar plans. Both episodes are fodder for a view widespread in markets, that bonds long ago ceased to be an independent reflection of economic fundamentals and are now just a giant bet on what central banks do with their securities portfolios. According to this view, quantitative...

Source: Wall Street Journal July 19, 2017 11:37 UTC