Bond yields still steaming higher and taking the euro with if after ECB press conference
1.1272 is the latest high as the bond market has a rather FX looking 'toys out of the pram' moment
German bunds touched as high as 0.879% and we're at 0.872% now. Yields across most of Europe are higher
When Draghi mentioned that we'd have to get used to volatility, and that the ECB would look through it, it removed some of the rhetoric about the ECB loading up for the summer. He's basically said that the free lunch is over and the bond market will have to make it's own mind up. It hasn't changed the fact that the ECB is still buying €60bn a month but his comments have seen an exit from bonds, which will be a double bonus for the ECB as it brings any ineligible bonds back into play at the short end
It looks like a win win for the ECB and another masterstroke from the silver tongued Dragster
