Are higher bond yields a headwind to the economic recovery and financial markets, or justified by the improvement in economic prospects as countries recover from the pandemic? This week on Macro Matters, we look at government bond markets to understand the impact of higher yields on the economic recovery and investors.

 Our host Paul Diggle is joined by the familiar voice of Luke Bartholomew, our in-house monetary policy expert, as well as Ross Hutchison, Investment Director at abrdn who works at the coal-face of government bond markets. Together they discuss the causes of the rise in bond yields, the implications for the economy and markets, and what central banks are saying and doing about it all.