Now that the dust has settled from last week's scare in the bond markets, a slightly unexpected consensus seems to be emerging. There is nothing to worry about, we are told. In fact, this is all good news. Treasury yields are rising because US growth prospects have improved. So unlike the February wobble - when US weakness was the story - there has been very little flight from risk.

I find this a bit of a stretch, but it certainly bears examination. To begin with, it seems clear that the rise in Treasury yields is to do with higher real yields, not inflation worries. It is also true that there has been no real re-pricing of risk.