The bedrock of ultra low yields is at risk

Bloomberg

The new decade could be the dawn of a tougher era for bond investors, as conditions that sustained the historic bull run in government debt fall away.
Unprecedented central bank action has dominated economic stimulus since the global crisis and suppressed yields around the world. The skew may now be shifting more towards fiscal expansion that could pressure rates higher.
Austerity is on the wane in Europe, spending packages are landing in Asia, and US borrowing is on track for even bigger records in the next couple of years.
The handoff from monetary to fiscal policy is a longer-run investment theme, says Mark Dowding at BlueBay Asset Management, and he’s already trading it in the UK, by betting against gilts.
“When you look at the UK, what we’re witnessing now is some pretty material easing in fiscal policy,” said Dowding. “It’s a theme that we expect to see more broadly.”
The Organisation for Economic Cooperation and Development says government spending globally has helped widen the fiscal deficit from 2.9% of world gross domestic product in 2018 to an estimated 3.3% next year.
Also, OECD economists are among the growing ranks pushing for more disbursements to tackle slowing global growth and climate change.