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Low yields forever

Such low expectations aren't confined to the UK. In the US, markets expect five-year real yields to be only 0.6 per cent in 2021. That's well below their pre-crisis levels.

These expectations tell us that negative real yields aren't simply due to the shock of Brexit or to the near-term economic slowdown this will cause. Instead, they are a long-term global phenomenon. Real yields have been trending downwards since the late 1990s. If there's a bubble in bonds, it's the longest-lasting one in history.

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