XE Market Analysis: Europe – Apr 14, 2021

The dollar has remained under pressure following the 8 bp drop in the 10-year U.S. Treasury yield yesterday, which came despite above-forecast CPI data. Yields have ticked slightly higher so far today, but remain near one-month lows at this maturity. Markets have evidently bought into the Fed’s view that inflation will remain contained beyond the well-flagged burst of base-effect driven rise. The solid demand seen at the 30-year Treasury bond reflected this.