As has been the case for a lot of the previous 2 weeks, European bonds have been arguing for a transfer to increased charges and US bonds have been reluctantly following.  Today’s installment focuses on the European Central Bank (ECB) announcement, which was largely as anticipated, however with an improve to the inflation outlook.  Traders took this to imply sooner fee hikes sooner or later, however once more, it is a greater situation for European markets with German Bunds roughly 7bps increased whereas US 10yr yields made it again to ‘unchanged’ ranges earlier than 10am after some preliminary volatility. 

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