The invisible hand at play?
Italian 10-year yields are now down 8 bps to 0.69% while Germany 10-year yields are down 5 bps to -0.31% in European morning trade.
This goes against the backdrop of Treasury yields pushing a little higher so far on the session, with 10-year yields up from 1.40% earlier to 1.43% currently.
Going back to Europe, perhaps the ‘invisible hand’ i.e. ECB intervention is what is helping to exude calmer tones in the market. That is something to consider after policymakers had talked up the potential to accelerate PEPP purchases if need be.
We already also saw the RBA double-down on QE today to try and address the issue while the BOJ also offered a bit of a warning earlier in the session here.
The ball is now in the Fed’s court as to whether they will mention anything this week, with Powell’s speech on Thursday going to be a key one to watch.