In the absence of "upside inflation surprises", Nomura's Charlie McElligott points out in his latest note this morning that it seems the rates market is approaching "fully-priced" for now for a "hawkish tightening cycle", and is now focused on the (negative) economic implications of tighter financial conditions. Locally, the Nomura strategist notes that equities are again bearing the brunt of said Rates move as macro catalyst - particularly the tightening in FCI as expressed per the enormous multi-week spasm in Real Yields - while flow-wise, now feeling the pain of the resumption of Dealer “Short Gamma vs Spot” ... (full story)