Oliver Mangan: Economic recovery to send bond yields higher

Steepening yield curves have gone largely unnoticed but have a major influence on mortgage rates

Expectations of stronger economic growth lie behind the increase in bond rates. Picture: iStock

It is usually the case in markets that equities hog the limelight, while the obscure world of bonds is largely ignored. However, interest rate markets are a crucial asset class and can tell us a lot about what investors really think. 

Most attention year-to-date has yet again focused on the continuing rally in stock markets, which have enjoyed a good start to 2021.