Fund manager John Abernethy says RBA deputy governor Guy Debelle was right to warn investors that there are a lot of negatives around that are already spilling from bond to equity markets. Abernethy suggests that the bond market is being perverted by central banks so that the pricing is giving us a false impression of growth. The German bond market and negative yield in Europe could also be an indicator of deflation leading to stagnation in Germany, similar to Japan's economic situation. Abernethy also warns that Australia is vulnerable to inflation and if Italian and Greek bond markets corrects, this would send shockwaves through all bond markets. (VIEW LINK)