• Amid a tumultuous week on markets, the ramp up in interest rates has raised fresh risks around sovereign and corporate debt.

• These two ingredients are a recipe for bond market kryptonite.

• At the front end of the curve, the hike and hawkish rhetoric from the ECB have seen a firming in rate futures.

• Following the meeting markets are now fully pricing in a further 75bps of hikes, implying a deposit rate of 3.25% by mid-2027.