It is too early to tell just how long the selloff in government bonds will last following "unprecedented" market volatility, Goldman Sachs International's Vice Chairman Michael Sherwood told CNBC on Monday.
European and U.S. bond yields soared last week to their highest levels this year—sending their prices tumbling—amid some positive signs on the economic front and a perception that inflation is picking up faster than anticipated a few months ago.
"We went from a period where rates were a one-way bet down when the (European Central Bank's) QE (quantitative easing) program was announced; we had a situation where 30-40 percent of government bonds had negative yields. That is starting to reverse itself a little bit, but it's too early to tell," Sherwood told CNBC.
"(ECB President Mario) Draghi has said they are committed to the QE program—it's very early days in a situation that is unprecedented," he added. "I think we will look back on this period and say: 'Wow, were rates really that low?' But it may take a couple of years."