Relative to the presence of important market developments and high volatility, the current landscape for bonds is surprisingly simple.  The banking panic pushed traders into bonds--primarily shorter-term bonds--at the expense of equities.  This is a classic risk-off trade.  Without a steady stream of new sources of panic, the trade reverses.  That's what we're seeing so far this morning, but trading levels are still quite far from pre-panic levels.  The only other obvious order of business will be to get the Fed's take on how recent events reshape the rate hike narrative.

To be clear, there's no major implication for tomorrow's meeting, but the outlook for the rest of the year has been going wild.

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