EQUITIES: EU Bank stock option

A 2.7bp jump in 10Y Tsy yields on the break of the overnight high of 2.0568%; through the 2022 high of 2.0627% for the highest levels since 2019. Now up 8.6bp for the session.

• No specific trigger in last half hour, seemingly just continuing from overnight optimism over Ukraine-Russia talks.
• 10Y future through 125-14+ Feb 10 low - the level identified by our tech analyst as the bear trigger, confirming a resumption of the broader downtrend. Now at 125-12, next supports at 125-06+ (May 30, 2019 low on continuous contract) and 124-27 (May 24 2019 low).

US 10Y Yield IntradaySource: BBG, MNI

The decision to accelerate the end of net asset purchases was a hawkish surprise, even though Lagarde preferred a more nuanced interpretation. Under the new setting, net asset purchases conducted under the APP will run at EUR40bn in April, EUR30bn in May and EUR20bn in June with the programme concluded in Q3 provided that incoming data support the medium-term inflation outlook.

For the full MNI ECB review including a summary of 15 sellside analysts click here.