The collapse in short term interest rates and associated fall in long term bond yields has seen investors seek out decent investment yield in assets as diverse as corporate debt, property, infrastructure and shares. And more recently this has broadened into a general search for higher returns as confidence in the economic outlook has improved. When assets are in strong demand their price goes up and their investment yield (or the cash flow the investment provides relative to its price) falls. This is certainly evident over the last two years. The chart below shows the yield available on various assets today versus what they offered 2 years ago. Bond yields have increased slightly after earlier sharp falls. But the yield on all other assets have fallen, although – corporate bond yields excepted – not quite as much as the plunge in term deposit rates.