Well there is no doubt that the FED will eventually wind down on QE, the markets has panicked and sold down on bonds in anticipation of this.

What it means is that bonds are already priced in to future hike of interest rates.

Lets look at the 30 year US treasury bond.













Over the last 12 months the yields have spiked up from 2.68% to 3.68%, that's a full percentage point or we could say a 37% rise in yields!!!

Next Lets look at our local bonds (Singapore Government Securities)







Looking at the our 30 year bonds, over the last 12 months yields have also gone up from 2.42% to 3.51%!!!

These 30 year bonds were originally $100 in par value paying a coupon of $2.70, currently they only trade at around $86.30 with a yield to maturity of 3.51%, so that's quite ......