They are putting their money where their mouths are. The new normal, they believe, implies the end of the long bull market for bonds. Returns “stand at the threshold of mediocrity,” Mr Gross recently opined. Underpinning this thesis is a belief that interest rates will march higher over the next decade, reversing an almost 30-year period of generally falling rates. When bond yields rise, their prices fall, eating into any gains from the security's coupon. A combination of rich-world overindebtedness and insufficient consumption in developing countries could also dampen returns, Mr Gross argues. Bear markets in bonds tend to be less spectacular than those in equities, but what they lack in depth they compensate for in length. In the 1960s and 1970s, when interest rates crept steadily upwards and prices sagged, bonds were dubbed “certificates of confiscation”.
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When bond yields rise, their prices fall, eating into any gains from the security's coupon.
当债券收益率上升时，其价格将会下跌，这将吃掉来债券带来的所有盈利。
Last week, when Spain, Italy and Belgium, bond yields rise, the German bond yields also rose.
上周﹐当西班牙、意大利和比利时国债收益率上升时﹐德国国债收益率也在上升。
Bond yields rise when their prices fall.
当他们的价格落下时，债券投资收益上升。
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