For some time now, Greek ten year government bond yields have been about 300 basis points above German yields.

Bond market vigilantes already have taken aim at Greece, Spain, Portugal, the United Kingdom, Ireland, and Iceland, pushing government bond yields higher.

The gaps between German bond yields and Italian and Greek yields are at record levels.

The fall in bond yields has extended to a far broader range of debt than just government paper.

If investors do decide that government bond yields are no longer worth the investment, sovereign borrowers options may be limited.

At this point, inflationary expectations will increase, long term government bond yields will rise, and the recovery will be crowded out.

Long term government bond yields are already very low, and a further reduction will not significantly change private agents borrowing costs.

At the end of the hiking cycle bond yields fall immediately, Deutsche said.

While that could be contractionary, the gain in fiscal policy credibility might prevent a damaging spike in long term government bond yields.

The gaps between German bond yields and Italian and Greek yields are at record levels. The price of default insurance has tripled.

Otherwise, Treasury bond yields would be far higher, thwarting monetary expansion by the Fed.

For some time now, Greek ten year government bond yields have been about 300 basis points above German yields. This is a sign that investors now see a significant risk of a Greek default or of Greece exiting from EMU and redenominating its government bonds.

And credit markets show low spreads, while long term bond yields have fallen in most advanced economies.

It is true that extraordinarily low long term bond yields put us outside the range of historical experience.

So far, it has led only to volatile flash crashes and sudden changes in bond yields and stock prices.

The euro zone s bond and bill markets would complement but not replace individual states existing government bond markets.

So, in times of surprise that move bond prices and yields, the banks are not present to act as stabilizers.

They did not comprehend the upward trend in prices before 1980, so bond yields, lagging behind rising inflation, were too low.

When that happens, inflationary expectations will mount, long term government bond yields will rise, mortgage rates and private market rates will increase, and one would end up with stagflation (inflation and recession).

Lower risk also will bring inflation expectations down and reduce interest rates, which will in turn speed up the compression of Polish government bond yields to comparable EU levels, increasing financial stability.

The falling yields at the Italian government s last bond auctions in 2011 suggested a significant reduction in the perceived sovereign default risk.

The Japanese 20 year government bond yielded just 0.87 on January 20.

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Investors subsequent efforts to price in the risk of a eurozone breakup not the volume of sovereign debt caused bond yields to spike.

A rate hike will come and the bull market will stumble, bond yields will climb and the economy will slip into a recession.

Thus, the recent problems faced by Greece are only the tip of a sovereign debt iceberg in many advanced economies (and a smaller number of emerging markets). Bond market vigilantes already have taken aim at Greece, Spain, Portugal, the United Kingdom, Ireland, and Iceland, pushing government bond yields higher.

Indeed, even something like a self fulfilling debt crisis is thinkable if market participants believe that a default or an exit from EMU is imminent, this would drive up government bond yields for the country in question. At some point, yields might become so high that the government concerned could not refinance its maturing debt or finance its current expenses.

Nor did the investing public fully comprehend the downtrend in inflation after 1980, so long term bond yields, lagging behind falling inflation, were too high.

Indeed, even something like a self fulfilling debt crisis is thinkable if market participants believe that a default or an exit from EMU is imminent, this would drive up government bond yields for the country in question.

Ten year yields on British government bonds were at historic lows long before Cameron took office.

Ten year yields on British government bonds were at historic lows long before Cameron took office.

As a result, bringing down yields on government, corporate, and asset backed bonds has less impact.

Long term inflation indexed bond yields have fallen to around 1 a year, or less, in the United States, Canada, the United Kingdom, and the eurozone.

To allay anxiety about government profligacy, the ECB built conditionality into its bond purchase program.

Savings Bond Inventory

The land yields heavy crops.

Likewise, an IMF program for Ireland which seems increasingly likely will not bring down domestic bond yields and reopen credit markets to any kind of Irish borrower.

China and Hong Kong are the largest net purchasers of US Treasury securities. Otherwise, Treasury bond yields would be far higher, thwarting monetary expansion by the Fed.

Japan's is a debt that cannot be paid and its government bonds deserve junk bond rating.

Yields on Spanish and Italian government bonds have been inching up again, and equity investors mood is souring.

Meanwhile, rising fiscal deficits in most economies are now pushing up the yields of long term government bonds.

Bond formally launched his own firm, Kit Bond Strategies, in November 2011.

Europe, gripped by a tremendous banking and debt crisis, is not an attractive destination, and loose monetary policy in the US has produced ultra low bond yields there.

The latest episode came just last month, when, in the space of a few days, ten year German bond yields went from five basis points to almost 80.

Euro accession and bull market convergence trades pushed bond yields in these countries toward the level of German bunds, with the ensuing credit boom supporting excessive consumption growth.