As global central bank exuberance suppresses equity volatility, emerging markets are catching up (or down).

Expected uncertainty in Emerging Market Equities has never been lower... (in fact EEM implied vol is now less than half its lifetime average of 29.7%)

However, as Bloomberg notes, the Federal Reserve’s hawkish posture last week sets the stage for an uptick in developing-nation volatility in the second half of the year, Bank of America Merrill Lynch strategists said.

Oh and there's one more thing...

A resurgence in EM vol is baked in the cake, no matter what happens, as China's collapsing credit impulse begins to ripple across the world.