Market Roundup: Balanced Approach in a Time of War

Tsy yields bounced off early London lows, resumed climb and gapped higher after ECB policy announcement this morning. Hawkish hold: keeps rates steady but accelerates asset purchase wind down -- concluding in third quarter "If the incoming data support the expectation that the medium-term inflation outlook will not weaken even after the end of our net asset purchases."

• ECB presser w/Pres Lagarde helped yields take another leg higher on comments such as "persistence of higher price expectations uncertain" and of course "war is a substantial upside risk to inflation". Cold comfort(?): money markets not seeing "sever strain" as a result of sanctions on Russia.
• Relatively muted react to hot CPI coming out as expected +0.8% MoM, 7.9% YoY, core YoY +6.4%..
• Back to watching Russia/Ukraine headlines: no progress on ceasefire talks; RUSSIA CONVEYED WILL CONTINUE ATTACK UNTIL DEMANDS MET, Bbg
• Tsy 30YY extends early session high to 2.3640% -- puts it back near mid-February high for 2022 so far of 2.3855% on 2/16.
• Yield curves bouncing off flatter levels, 5s30s -.98 at 44.38.
• Cross asset update: SPX eminis -0.99% at 4223.25 (-42.5); West Texas Crude (WTI) +3.77% at 112.8 (+4.1); Gold +.63% at 2004.0 (+12.5).
• Tsy Technicals for TYM2 slipped to 126-05.5 low -- eying first support of 125-29 (Low Feb 25); second support: 125-14+ Low Feb 10 and the bear trigger.