It is a similar story worldwide, as global inflation has trended lower over this period for many reasons including the increasing use of inflation targets by central banks. The decline in inflation that has, in turn, driven a decline in market yields, has driven substantial capital gains in bond markets. The 1980s were characterised by a period of high inflation, and corresponding high interest rates meant the coupon return was the most significant driver of fixed interest returns during this period. In contrast, during the early 1990s, a period of disinflation prevailed in Australia, and the contribution from capital returns became relatively more important. Over