Global economic growth continues to gain momentum. With growth comes inflation and with inflation comes rising interest rates as central banks try to put the brakes on. The question is how high and how quickly rates should rise, particularly if growth starts to look vulnerable. This is a real balancing act. It’s a tough gig for central bankers and particularly for US Federal Reserve Chairman Jerome Powell, who has only been in the job for five minutes. As rates rise so do bond yields (more of that later) and the focus over the last couple of weeks has been on US government bond (Treasury) yields reaching 3%, a largely symbolic level but important nonetheless. This month we consider the significance of bond yields hitting this level in the US and assess the possible impact on fixeed interest and other asset classes.