More big moves might have been expected this week, but markets have found themselves in a deeply uneasy equilibrium as the world braces against the threat of an Israeli ground offensive in Gaza, Iran jumping into the fray, the imminent prospect of Chinese property firm Country Garden defaulting on its offshore debt, oscillating Fed hike probabilities, and an offsetting tension between oil prices, equities and government bond yields.

Credit once again feels strapped in for the ride. We have no idea where that ride is going in the short term, but we know the engine is revving. The CBOE Vix underwent a short jump higher last week to the 21 area, and although that’s well within the range it traversed back in March it could be the preliminary rumble to a bigger spike in the coming days.