Arguably the greatest risk to investors today is an under appreciation of how significant a change in bond interest rates will be. And these rates can change even if central banks don’t raise their own short-term offerings. The rates I am referring to are the long-term rates that are a cornerstone variable in the macro economy and are typically set by market forces, through inflationary expectations and variations to perceptions of a sovereign’s relative risk. Long bond rates are important. They are a key variable in a borrower’s decision to commence a business or acquire a property. Policy makers gauge the state of the economy, and government expenditure financing is decided upon, using long-term rates as a benchmark. Lenders also use long bond rates as the benchmark against which they weigh the risk against the reward of extending credit. Perhaps most importantly, however, the long-term bond interest rates are the rates used to estimate the value of assets and projects.