Daybreak Europe: Show Open: Volatility At Pandemic Highs

The video discusses the current market volatility, with a focus on the Fed's expected rate hikes and their impact on inflation and yields. It highlights the movements in the short end of the curve and the repricing of Aussie rates. The discussion also covers the effects of yield changes on equity markets, particularly the S&P 500, and the role of tariffs. The video concludes with an update on S&P 500 futures and the ongoing market rally.

Discuss the relationship between equity markets and yield movements as described in the text.

What does the term 'short covering' refer to in the context of the market discussion?