Most asset classes, including equities, commodities and corporate debt, have managed to deliver some welcome positive returns in the past two months. But there is one glaring exception – government debt.

US 10-year Treasury bonds have posted a total return of minus 6.5 per cent so far this year, after chalking up a gain of 21.2 per cent in 2008. Losses on benchmark bonds are on track to surpass the 8.3 per cent loss registered in 1999, the worst of only two negative years posted since 1990.