The unusually spectacular returns of 2017 had up until quite recently saturated the markets with a sense of complacency. Lulled into the expectation that risk assets would inexorably rise, investors entered 2018 with a collective hubris. But pride tends to go before a fall.

The shake-up of the last few days in the bond markets, where a rush of sales saw Treasury yields rise to their highest point in months, may be the first sign of a wake-up call. Indeed, in our view, bond investors are at a critical juncture as we enter a period of significant regime change.