Financial markets have been adjusting to the reality of a supposed new global economic cycle over the first quarter of 2021. As governments continue to inject significant funds in a rapidly recovering vaccinated economy, there are increasing signs that the economy could overheat in the foreseeable future. While central bankers have repeatedly dimissed the threat of rising inflation over the medium term, markets have been quite edgy about rising inflationary pressures and have, in fact, refused to heed the guidance of central banks. Rising yields at the long end of the yield curve have been a feature of most developed countries over the quarter. For instance, the yield on the sovereign US 30 year debt has risen by 77 basis points to reach a post-pandemic high of 2.41%...
