• AUD leads, USD lags on the day
  • European equities higher; S&P 500 futures up 1.0%
  • US 10-year yields down 12 bps to 3.36%
  • Gold up 1.3% to $1,831.92
  • WTI crude down 0.7% to $118.11
  • Bitcoin down 4.1% to $21,067

What a day it has been. And we're still yet to get to the Fed.

The ECB stole the headlines early on as policymakers gathered for an emergency meeting to discuss on the bond market rout and how to go about sending a message on fragmentation risks.

That sparked a bid in the euro and allowed for European bond yields to come tumbling down, with Italian 10-year yields falling by 40 bps to 3.88% - its biggest one-day drop since March 2020.

EUR/USD moved up from 1.0430 to 1.0480 initially before grinding higher to just above 1.0500 as the dollar weakened across the board amid profit-taking ahead of the Fed. The pair is seen easing back down to 1.0450 levels though now as the ECB seems like they might not offer up any details on what they may go with in dealing with fragmentation risks.

The dollar's slip up today comes alongside a retreat in Treasury yields with yields sliding across both the front-end and back-end. 10-year yields are down 12 bps to 3.36% and that is seeing USD/JPY keep rather heavy in a drop from 135.10 to 134.30 on the session.

Elsewhere, GBP/USD made its way back up from 1.2000 to 1.2125 and AUD/USD also gained notable ground in a push from 0.6900 to 0.6950. The aussie's advance is also helped by a relief bounce in equities with European indices gaining amid the ECB announcement and also US futures covering some losses from earlier in the week ahead of the Fed.

It's now a countdown to the FOMC meeting later before we get more major central banks on the agenda later this week featuring the SNB, BOE, and BOJ.