We remarked on Monday's notable calming in market circumstances, as volatility dipped, bond yields rose and risk was put back on again. A lot of that completely reversed early Tuesday, and even though there was something of a subsequent calming as the day progressed, a more menacing tone obtained overall. We're left with the impression that the markets want this movie to play out a bit more before taking a conclusive stance. That's probably fair. Ahead, we risk seeing bouts of flight to safety, pushing yields down. Don't rule out a break back below 4% on the US 10yr, even if brief, likely on a risk-off episode should ... (full story)