The slight dip earlier came from the Eurozone inflation data here but we are seeing yields turn around, similar to yesterday, to climb higher again. 2-year yields in the US are now up over 7 bps to 4.17% while 2-year yields in Germany have also pared the drop to be up 5 bps at 2.79% currently. The latter hit a low of 2.72% after the record drop in euro area headline inflation.
But as mentioned since yesterday, core inflation remains a big problem and the report earlier highlighted another record high reading in the euro area. That won't give the ECB much comfort and reaffirms the likelihood that more rate hikes are still to come - something which markets are slowly wrapping their heads around as mentioned earlier here.
