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Government bond markets have experienced material volatility year to date, with yields rising to reflect changes in expectation for policy rates globally. Central banks are raising interest rates in response to the continued high levels of inflation being experienced in many countries. At the time of writing the bond markets are already discounting increases in rates to levels not seen since before the financial crisis of 2008. In the UK in particular, bank rate is already at 1%. In the UK, the market is implying through the yield curve that bank rate will peak at around 2.25%, in the US around 3% and in Europe 1.5%. The implied curves are shown below.