Bond managers expect a prolonged cycle

Ever since the summer of 2013, when then-Federal Reserve chairman Ben Bernanke mooted the idea of ending quantitative easing, investors have focused on what happens when US interest rates finally rise. The end of a 35-year bond market rally? The answer, though, might be: not much. Volatility is likely to spike, but in short-term increments; the persistence of low yields will linger, however. “The European Central Bank and the Bank of Japan had followed the Fed’s lead, but now th…