Bonds, Dollar Dump As Draghi Warns Of “Vigorous” Inflation Pick-Up

The dollar and bond prices snapped lower after ECB President Draghi, answering MEP questions in Brussels, warned of a “relatively vigorous pick-up in underlying inflation” sending EURUSD and Bund yields spiking.

Draghi is alos bullish on the economy:

  • *DRAGHI SEES ONGOING BROAD-BASED ECONOMIC EXPANSION

  • *DRAGHI: PICK-UP IN WAGE GROWTH WILL CONTINUE

  • *DRAGHI RESTATES ECB GUIDANCE ON ASSET PURCHASES, INTEREST RATES

Draghi’s potentially hawkish tone sent EUR higher and the Dollar lower…

Thanks to a surge in EURUSD…

And Treasury yields are testing recent range highs…

As Bund yields spiked…

 

 

 

via RSS https://ift.tt/2Q14VPx Tyler Durden

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