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Fixed-income markets have captured the attention of investors and analysts in recent days, as sovereign debt yields spike. For example, the yield on the 10-year Spanish bond already exceeds 4%, a level not seen since 2013, while the 10-year U.S. bond is hovering around 4.75%, a high for the decade.
Another benchmark that has surprised investors is the 30-year US bond, which during the week was paying 5% for the first time since 2007. These strong generalized increases in all countries, caused by a tightening of tone from central banks and higher rate expectations for a longer period of time, have in turn led to falls in equity markets, with the US indices ceding up to 2% on some days this week.
Alberto Matellán, chief economist at MAPFRE Inversión,...
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