There has been a major bid in global bonds since the ECB press conference wrapped up.

The suspect market is looking at the ECB's new Transmission Protection Instrument and think that it's boxed itself into buying periphery bonds in large quantities. Yes, there's plenty of flexibilty there but politically, the ECB is going to need to close spreads. Or at least it's more likely to buy than it was before.

So let's say you're Ray Dalio and short Italian bonds. Do you really want to face off against the ECB? Or would now be the time to cover?

Moreover, the 50 bps ECB hike shows the commitment of global central bankers to fight inflation , even in the face of mounting economic risks -- particularly in Europe.

German and Italian bonds started the move but now it's global. US 20-year yields are down 11 bps to 2.92% from a high of 3.08%.

US 10s

In turn, the pressure is ramping up on USD/JPY, which is now down 50 bps on the day to 137.76. It's been a relatively quick decline.

usdjpy 15 min