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The changes in monetary policy coupled with the volatility in the global equity market is the primary reason for the developments in the international fixed interest markets. In the U.S., the Fed ceased its quantitative easing program in relation to bond purchasing which allowed for low bond yields. The 10-year treasury yield rose from 2.4 at the end of August 2014 to 2.6% by mid-September. However, with the global equity volatility kicking in, the U.S. 10-year yield consequently dropped to a low of 2.16% in mid-October. Investors saw a slight rise in the yield following the dip in the yields. Unfortunately, the yield as of January 20, 2015, has dipped to a low of 1.82%. 

Looking towards Europe and Asia, the focus has been on a looser monetary policy. The European Central Bank moved towards a quantitative easing program and the Bank of Japan has announced a substantial increase in the level of its bond purchasing. As a result, bond yields have dropped in the two markets. In Europe, the 10-year German government yield has fallen to 0.45%. Moving over to Japan, the already low yields have dropped even further to 0.22%.