Risk in financial markets may conceal itself in places that aren’t obvious: take government bonds.
Governments tend not to default in their own currency, so they are certainly free of credit risk, but even as they borrow more, real yields remain very low for investors now starting to worry about inflation.
That is largely thanks to central banks deliberately supressing the cost of servicing government debts.
At the start of January, 10-year Bunds offered buyers a negative -0.605%.
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