The spike in government bond yields last week suggests that investors are pricing in a recovery in global growth and inflation as the Covid-19 vaccine roll-out continues. Still, the speed of the roll-out is not the only determining factor in the return to normality, as Marc Franklin, head of flexible multi asset, explains in our latest podcast. The policy response will play a key role, as governments will need to lead from the front in terms of easing restrictions.

The rise in potentially vaccine-resistant virus mutations could also be a roadblock on the path to recovery, according to Mark Belsey, senior investment analyst. The coming months will no doubt bring further surprises as new strains evolve, changing the way we approach the virus. “We’ve come a long way in the past few months, but we’re not out of the woods yet.”