Recently, I returned from a study tour of the world capitals of global macroeconomic policy. This report includes my observations from the road after meeting with key policy making officials, as well as economists and market participants across the US, EU, UK, China and Japan. In short, the current market equilibrium reflects an extremely fragile balance taking place across the global fixed income markets. The US Federal Reserve’s (the “Fed”) efforts to gradually tighten policy will ultimately lead to higher yields, but for the time being they have been overshadowed by efforts from the European Central Bank (ECB) and the Bank of Japan (BoJ) to ramp up stimulus. As a result we have seen lower bond yields over much of this year. However, should the Fed raise rates in December, or if the ECB or BoJ should falter even slightly in their resolve, then fixed income investors need to be prepared for rising bond yields ahead.