Calmer tones flowing through so far but the coast isn't clear just yet
The market is keeping a calmer tone in European morning tradeWell, for now at least. The long-end in German bonds are seeing a steady bid this morning, helped by ECB's Schnabel's remarks earlier here.
That is feeding to calmer tones in European bonds but we are also seeing US futures pare earlier losses to keep slightly higher for the time being.
This doesn't take away the scarring memories from yesterday though, as it is still rather early in the day to say that the worst this week is over. It may be the case but we will have to get confirmation from Wall Street for that.
Just be mindful that we could be getting a vote on Biden's stimulus plan before the weekend, and that might get yields a bit trippy again so there's that to consider.
10-year Treasury yields are down a little over 5 bps but not really falling any lower so far.
At least for the moment, the market is able to catch a breath after the tumultuous session yesterday. In FX though, the dollar is staying more bid but is off earlier highs.