China's CSI 300 index down 3% on the day now
A sign of things to come for equities sentiment?
Surging yields is the key thing to watch in the market today and while commodities are benefiting from the reflation focus, equities are being hurt as bonds are staring down the barrel of yet another rout to kick start the week.
Copper is continuing its red hot form but keep an eye out on other precious metals as the early gains may face a reality check with real yields also ticking higher today.
If equities start to roll over and risk aversion kicks in, the buy-everything mode in the reflation narrative can easily turn 180 degrees in the other direction instead.
For now, we're not seeing any significant downside extension outside of Chinese stocks but it is a warning signal that investors are heeding caution for the time being.