The bond market has been undergoing a transformation over the past few months. Yields on longer-term bonds — with maturities of 10 years and up — have been rising. That’s been the case not just in the United States, but in Germany, the United Kingdom, Japan, Italy and France.
Loans to governments, of which bonds are one type, come in many flavors. They can last a matter of months, years or decades. They all offer a return — similar to an interest payment — to those who own them.
Over the past few months, investors have been walking away from longer-term bonds because, they’ve decided, the yields were too low.
“It’s been a pretty significant move to higher yields,” said Gargi Pal Chaudhuri, chief investment and portfolio strategist for the Americas at BlackRock.
The change in the U.S. has been spurred by a recalculation of what the future U.S. economy looks…
