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Live Q&A: Where next for bonds, central banks and interest rates?

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Bond investors are having to react to some rapidly changing indicators: new forecasts of higher inflation, and signals from central banks that they will raise interest rates sooner than expected, as well as reversing their asset purchase stimulus programmes.

After repeated warnings about high inflation from Bank of England officials, a UK rate rise is now expected in December, with a second increase to follow in February. That would lift the UK base rate to 0.5 per cent — the point at which the central bank would stop reinvesting in bonds under its quantitative easing policy.

Similarly, in the US, consumer prices are now rising at their fastest rate in 13 years, leading the Federal Reserve to acknowledge inflationary pressures from supply chain bottlenecks, as it also prepares to “taper” its $120bn a month asset purchase programme.

With all these factors making fixed-income bonds less attractive, will further sell-offs ensue? If so, which bonds are likely to suffer most? And will Chinese bond default fears cause further contagion in bond markets? Or are these fears overdone?

Tommy Stubbington, the FT’s capital markets correspondent in London, and Kate Duguid, our US capital markets correspondent based in New York, will answer your questions about bonds throughout the day (GMT) today

Post your queries in the comments below, and our FT reporters will drop in regularly today to answer them. Their replies will appear underneath your questions.

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