One can argue that the trigger came as European bonds tumbled in the aftermath of the ECB last week but inflation worries have certainly not helped with the picture whatsoever. The bond selling is finding a new leg here in European morning trade, with 10-year Treasury yields surging up by 9 bps to 3.24%. That is the highest since 2018.

The 2018 highs come in around 3.25% to 3.26%, so that will be a key spot to watch before a potential technical break towards 3.50% next.

It is looking ugly out there and there isn't much reprieve anywhere besides banking on the dollar right now.