‘Government bonds are a buy’

The relentless rise in government bond yields – the cost of countries’ borrowing and the pressure that puts on their finances – has become headline news. A crisis in which governments will be forced to slash public spending to reduce their deficits and stop the relentless rise in ratios of government debt to GDP is widely predicted. But it is rare for crises to be widely predicted, and, if they are, they never unfold as expected. In the popular narrative, “the bond vigila