The selloff sweeping global bond markets looks painful, but it's nothing compared with the rout four years ago, when soaring inflation forced central banks into a series of rapid-fire interest-rate hikes.
The difference is scale.While the latest pullback has driven yields to multi-year highs in the world's biggest markets, the move is just a fraction of the one seen in late 2022.
Global government bond yields have risen 17 basis points on a rolling 20-day cumulative basis, compared with 62 basis points back then, data compiled by Bloomberg show.
On a peak-to-trough basis, bonds have lost 4.2% this year - a far cry from the 23% plunge seen in 2022.While the current selloff is hardly showing any sign of letting up, the relatively modest move in yields so far is offering some reassurance to seasoned market watchers.
While today's volatility may feel disruptive, it is also improving the long-term opportunity set across fixed income markets, said Mike Goosay, CIO and global head of fixed income at Principal Asset Management.
