Some volatility being seen in the bond markets right now. "After a whirlwind week that caught central bankers off guard, Wall Street is getting some relief as the ferocious bond selloff eases. But the fear is that the market rout still has room to run."

"We would expect a tactical pause here as central banks push back -- structurally though, the direction is higher and we continue to be short. Bond yields are still well below where they should be versus inflation and growth."

Among the biggest-hit bond markets this week is the U.K., where surging yields paved way for money-market traders to completely price out interest-rate cuts.