June was a rough month for global bond investors, and the rapid backup in yields backlashed into equity markets. Bond yields were artificially low and the recent rebound still leaves yields at historically low levels. Still, global economic activity is not yet robust enough, nor are government finances sound enough, to withstand a further sizable rise in borrowing rates. Thus, we expect central bankers to do their best to calm investors and stabilize bond markets in the immediate future. Indeed, statements from the Fed, ECB and BoE in early July, were aimed at achieving such an outcome.