Headlines:
- The bond selloff is starting to gather pace again
- Eurozone March preliminary CPI +7.5% vs +6.6% y/y expected
- UK March final manufacturing PMI 55.2 vs 55.5 prelim
- Eurozone March final manufacturing PMI 56.5 vs 57.0 prelim
- Switzerland March CPI +2.4% vs +2.4% y/y expected
Markets:
- AUD leads, JPY lags on the day
- European equities higher; S&P 500 futures up 0.5%
- US 10-year yields up 7 bps to 2.41%
- Gold down 0.5% to $1,927
- WTI flat at $98.52
- Bitcoin down 1.1% to $45,264
Euro area inflation hit a record 7.5% in March but it isn't anything the market wasn't prepared for after the overshoot in the Spain and Germany readings earlier in the week.
Stocks are kick starting the new month/quarter in good faith, holding a slight advance after yesterday's retreat.
Meanwhile, the bond market selloff is starting to gather pace again with Treasury yields jumping across the curve. That in turn is also seeing the resumption higher in USD/JPY, with the pair holding up 0.7% around 122.30-50 levels on the session.
The dollar is keeping more mixed but mostly little changed, though the aussie is a notable gainer as AUD/USD pushed back up above 0.7500 on the day. Buyers struggled to hold above the figure level in March trading so let's see if they will have the appetite to crack through that and key resistance around 0.7555 in April.
It looks like we're just returning back to some familiar themes with the yen weaker, bonds offered, and equities keeping a calmer tone. US non-farm payrolls is coming up next but I don't see that as being a significant factor; though it is still one to keep an eye out for.
