EUR Market Unfazed by Yield Volatility as Flash PMIs Loom

The recent volatility in US long-end yields has had little impact on the EUR side of the market.

However, the upcoming data release may provide some insight into whether the European Central Bank (ECB) will be able to backtrack on its tightening measures further down the road.

The flash PMIs are scheduled for release, and markets are looking at these numbers as a potential game-changer in terms of ECB policy.

US 10y Treasuries have experienced a range of over 11bp over the past three days, with yields fluctuating widely. This volatility has left some investors wondering if the near-term hike discount will hold up to scrutiny.