North Korean worries saw markets trade in a risk-off fashion last week, as sabre-rattling from Pyongyang in the wake of new sanctions was met by threats of 'Fire and Fury' coming from the Trump White House. But markets' Korea wobble is likely to be short-lived.

Government bond yields rallied during the week, with credit spreads pushing wider, though price action in equity markets was relatively orderly. It was interesting to observe that price action in assets which one would typically expect to be most affected by these concerns (such as the Korean stock market) were far from exceptional.