The U.S. 10 Year Treasury note has fallen from 1.75% on March 31, 2021 to 1.33% this morning. This has been a sharp reversal after a steady climb over the past year from 0.61%. There is no clear consensus on the factors that have driven yields lower over the past three months. From our capital markets team perspective, they believe there is renewed concerned that the delta variant, which is becoming the dominant strain, will slow down the ‘reopening’ process across the world. If this were the case, the market is signaling that earnings expectations are too high and not supported by current levels of valuations and that inflation is indeed transitory and risks falling back below 2%.