"The market is confident in the Fed’s ability," said Jim Barnes, director of fixed income at Bryn Mawr Trust in Berwyn, Pennsylvania. Heightened risk sensitivity has come as major central banks hike rates and bond markets in Britain and Europe react to their own inflation and growth problems and, in the case of the UK, announce ill-received fiscal remedies. Bond markets in major economies have recently seen almost unprecedented illiquidity and volatility, and this may have exacerbated moves in the many corners of fixed income, including BEIs.