This page looks at government bond yields and expected inflation. The chart on the left includes the historical 10-year government bond yields of Germany, Japan and the U.S. The 10-year bond yield is a popular benchmark and its movement can suggest possible changes in the investing environment, for example through shifts in what is happening policy-wise or in the economy. On the left are inflation expectations from the market based on swap rates. Recent inflation expectations have been trending upwards as the world economy recovers. This in turn has led bond yields to creep upwards, especially in the U.S., as higher prices imply higher interest rates in the future as central banks raise rates to combat inflation.