Weekly Commentary: Yields surge as new regime plays out

Bond yields are surging as the volatile macro regime brings uncertainty over central bank policy and risks ahead. We get granular in bonds and equities. The 10-year U.S. Treasury yield jumped to 16-year highs and stocks slumped over 2% last week. We think yields can go higher but see regional opportunities. U.S. and euro area inflation is in focus this week. Inflation has cooled as pandemic mismatches resolve, but we see demographics starting to bite.