The recent jump in yields does not signal the beginning of a major bear market for bonds but just an expected return to normality, a leading investor has told CNBC.
According to Didier Saint-Georges, managing director and member of the investment committee at Carmignac Gestion, the recent bond market reaction to a pick-up in inflation expectations is entirely rational.
"The move in rates is a bit of a normalization from a previous situation when the whole market was pricing in zero inflation forever," he said.
"So it's the minimum you can expect," the investor added.
10-year Treasury yields have been on a steady upward trajectory since reaching a low for 2016 of just under 1.40 percent in early July. On the day Donald Trump was announced as the president-elect, the yield spiked suddenly from 1.88 percent to 2.07 percent, before edging up in subsequent days to close at 2.23 percent most recently.