This may just be a repeat of what we saw yesterday when yields fell after the softer inflation data from German states and Spain before recovering to pull back higher later in the day. 2-year German bond yields are now sitting at 2.74% from around 2.82% as traders seem to have a kneejerk reaction to the headline figure in the inflation report here.
The core figure is at a record high though and as such, it will not convince the ECB of a turnaround in the outlook just yet surely.
