Weekly Commentary: Why we stay underweight bonds

We see developed market (DM) government bonds as ineffective portfolio diversifiers and favor inflation-linked bonds in this inflationary environment. Energy prices surged on further supply concerns. Equities slid, with Europe harder hit than the U.S. Bond yields fell on reduced rate hike expectations. The European Central Bank will likely emphasize the need to assess how higher energy prices will hurt activity, suggesting less for it to do to normalize policy.