Highlights:

• Left far behind the curve by surging prices, major central banks are playing catch-up. This reins in inflation worries, but fuels growth concerns.
• A recession is not (yet) around the corner. But worries about weaker economic and earnings growth keep risky assets on the defensive.
• Central banks for now will walk their hawkish talk. But the upside for yields is limited from here, as self- correcting mechanisms (risks to growth and financial stability) are kicking in.
• The Fed should turn less hawkish by late summer, which may then revive the appetite for risk.
   

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