Markets are playing catch-up to the new regime Bond yields have surged to 16-year highs. We think the market is adjusting to the new regime and its implications – especially higher macro volatility. We center our outlook on structural shifts and look through the market noise. {chart} 1. Holding tight: Markets have come around to the view that central banks will not quickly ease policy in a world shaped by supply constraints. We see them keeping policy tight to lean against inflationary pressures. 2. Pivoting to new opportunities: Higher macro and market volatility has brought more divergent security performance ... (full story)