As the war with Iran drags on and the tactics seem evermore chaotic, the capital markets are normalizing after the extreme volatility that gripped them six weeks ago. The two-year note is trading at 3.79%, well below the 3.99% touched at the start of the conflict and the 2-year/30-year yield curve stands at 111 basis-points, midway between the 94 – 140 basis point range this year. Equally surprising is the equity market. The S&P 500 which had “corrected” by 10% at the end of March and had many market watchers forecasting a prolonged bear market has now retraced nearly all of that loss.