This may increasingly simply be a repeat of what we noticed yesterday when yields fell after the softer inflation information from German states and Spain earlier than recovering to tug again increased later within the day. 2-year German bond yields at the moment are sitting at 2.74% from round 2.82% as merchants appear to have a kneejerk response to the headline determine within the inflation report right here.

The core determine is at a document excessive although and as such, it won’t persuade the ECB of a turnaround within the outlook simply but certainly.