Will Central Banks Spoil Buoyant Market Sentiment?

In recent weeks, synchronized hawkish rhetoric central banks has purshed bond yields higher. Key comments from European Central Bank President Draghi and Bank of England Governor Carney triggered speculation that a shift away from the period of extremely low or negative interest rates and quantitative easing (QE) is imminent.

The Fed is openly contemplating when to start reducing its balance sheet and raised official target rates in June of the fourth time this tightening cycle. Then there's China, where the people's bank of China (PBOC) is trying to find a balance, tightening monetary policy to adress exessive leverage in the financial system without causing a credit crunch.