The staggering run of bonds

The market spent the session waiting for Nvidia, with hedges being put on throughout the day, which is why the VIX 1-day rose from around 8 to 15.

Correlations have fallen to new post-financial crisis lows, and that’s a good thing for investors.

Fed policy has a heightened data dependency, leading to increased volatility in the bond market. Even though rate cuts remain the odds-on favorite for later this year, investors should heed the tenor of recent Fed-speak, which reinforced the notion of rates being higher for longer.