The VIX move last week was one of the biggest ever in percentage terms. Saxo Bank chief economist Steen Jakobsen outlines what he thinks is happening to the market.

He believes that the market and policymakers are on a 'two-way street'. The yield curve is steepening, as rates looks to rise marginally. The banking sector supports a rise in rates because the longer quantitative easing remains, the more pressure there is on the banking sector.

Jakobsen expects 10-year bonds to rise further.