Hugh's review: Understanding the bond markets

It has been a rollercoaster ride for bond markets in recent weeks, with yields, the interest rates on these financial instruments, rising sharply.

Bonds are issued by Governments and companies to raise money. Their performance is crucial for government finances and the borrowing costs for companies and households.

Markets have been responding to signals from the US central bank, the Federal Reserve, that stimulus support for the American economy may be withdrawn.

Hugh Pym discussed these issues with Francisco Garzarelli of Goldman Sachs and Myles Bradshaw of PIMCO.