German 10-year bund yields are at the lows of the day, down 5 bps to 1.206% after touching as two week high of 1.369%.
Part of the reversal came after Lagarde said this was an acceleration of the pace of hikes, not a change in where the ECB sees a terminal top. There's also abundant confusion on the ECB's newly-unveiled Transmission Protection Instrument.
On the chart, what had looked like a bit of a break to the upside has now been wiped out.
It's going to take some time for the market to figure out what's going on with the Transmission Protection Instrument because it's vague so far. For all we know, the ECB could be buying Italian 10s right now and pushing down global rates.
