In case you didn’t see how the European bond market closed, it was ugly. The German 10 yr bund yield spiked 13 bps to .37%. This is the worst day since December 3rd, 2015.
The 2 yr yield was higher by 6 bps to -.56%, the least negative in a year. The French 10 yr yield was higher by 14 bps. The Italian 10 yr yield jumped by 16 bps and Spain was up by 12 bps.
I reiterate AGAIN the danger that is the European bond market as the ECB gets deeper into its taper and it can single handedly drag US yields higher as they are today.