One of the more interesting themes in the market right now is the ability for the market to look through potential risks.
The market has just not cared about the front end of the yield curve. Over the past few weeks we have had a fairly remarkable repricing of the global front end. Looking at charts of 2y government bond yields across the developed world, many are up 50bps over the past few weeks alone. We have gone from, maybe central banks hike next year, to maybe they hike a lot in a very short period.