Let's reverse engineer this. Looking....>

EGB SUMMARY: Let's reverse engineer this. Looking at the 6.5bp rise in the Bobl

yield and 2-3bp widening in Bund-BTP and BTP-Bonos spreads, one might have

imagined that Draghi had delivered a hawkish message. This was not the case and

commentary was rather that it wasn't dovish enough given the recent rise of the

euro.

- The 2-5Y EUR swap curve spread steepened to its widest in nearly 4 years. This

is often seen as a judgement of how fast the ECB must hike rates one to two

years out. By saying that there was little probability of a rate hike this year,

faster rate hikes were priced in for 2019.

- The 10Y Bund yield is +4bp at 0.627% but hit a two year high of 0.643% during

the press conference. Most of the swap trades that we picked out were curve

trades in the aftermath of the ECB, with a slightly bullish bias.

- The euro exploded higher to above $1.25, absent Draghi making a greater

attempt to weaken the European unit, although Draghi is very constrained by what

he can say on the topic.