Here is an intraday chart of the German 2 yr yield that reflects the immediate spike after the ECB announced the 50 bps hike but come down after when they didn’t commit to anything more past this meeting, with it completely ‘data dependent’ from here. QT has begun. The euro too jumped but now is at the low of the day vs the USD.
As for what this means for the Fed, from a risk management stand point they should do nothing but the ECB gives them some cover to give us one more symbolic hike so they can express their confidence in the US banking system and to their commitment to further tame inflation. The fed funds futures are pricing in a 76% change of 25 bps rate increase next week.
German 2 yr intraday
Euro Intraday