A spike in bond yields and a clear change of direction from central banks means there isn't a lot of value in global bond markets, a fund manager told CNBC on Tuesday.
"There isn't a lot of value, to be honest (in the bond market)," James Athey, global fund manager at Aberdeen Asset Management, told CNBC.
"If this is and I say if because to some degree we've been here before and there have been false starts and false storms with central bankers and in the first sign of trouble they retreated into their foxhole, it looks to me like there's a concerted effort for that not to be the case here. And if we are therefore on a path towards some normalization in the rate complex many of these central banks that have had an uber easy policy it's difficult really to see a lot of value in the bond markets."
Despite being wrong on a few occasions previously, many market players now believe that central banks will follow the Federal Reserve and will slowly start to tighten their monetary policy, including the European Central Bank and the Bank of England. These benchmark rates help set the prices for a slew of global bond markets and loans, meaning that fixed income assets are very sensitive to interest rate moves. A rising interest rate environment is usually negative for bonds with investors instead opting for equities in a reflating economy.