(click to enlarge) Conclusions: We believe that the most pertinent implications of the forthcoming major Risk-On phase are as follow: Bond yields will likely rise significantly higher to adjust to the levels implied by stronger inflation and US GDP growth over the near-term. (click to enlarge) Inflation expectations and bond yields are bottoming The broad underpinnings of the January CPI data confirms that the reality of higher inflation will remain a game-maker in our near-future. That had significant impact in the pricing of major financial assets, especially bonds.