Bonds, Dollar Dump As Draghi Warns Of "Vigorous" Inflation Pick-Up

The dollar and bond prices snapped lower after ECB President Draghi, answering MEP questions in Brussels, warned of a "relatively vigorous pick-up in underlying inflation" sending EURUSD and Bund yields spiking.

Draghi is alos bullish on the economy:

  • *DRAGHI SEES ONGOING BROAD-BASED ECONOMIC EXPANSION

  • *DRAGHI: PICK-UP IN WAGE GROWTH WILL CONTINUE

  • *DRAGHI RESTATES ECB GUIDANCE ON ASSET PURCHASES, INTEREST RATES

Draghi's potentially hawkish tone sent EUR higher and the Dollar lower...

Thanks to a surge in EURUSD...

And Treasury yields are testing recent range highs...

As Bund yields spiked...