The steady grind higher in bond yields worldwide continues to be the central development for financial markets.
Unusually, this move has been stronger so far in the G10 countries than in emerging markets, though this gap is now beginning to close. In another departure from historical experience, equity markets have largely shrugged off the move, with US, European, and Japanese indices still close to record highs. Currency markets have maintained their composure thus far as well, but the dollar has emerged as the clear point of refuge for investors in the wake of the parallel sell off in government bonds globally.