The European Central Bank's public undertaking to keep a cap on rising rates does seem to be working to cap the EUR also.
- Its a weight on European yields
- and in effect is widening the gap vs. yields in the US (approaching 200bps for Bunds from 150 in January)
Add in some extra ingredients:
- the renewed imposition of virus restrictions in Italy
- the threat of the same in France
- the suspension of the AstraZeneca vaccine in many European countries
- the snail's pace of vaccine rollout otherwise
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Ahead this week from the eurozone:
- ECB officials Lagarde, Schnabel, and Guindos speak Thursday
- Today, Tuesday 16 March 2021 's the ECB publish PEPP data (out at 0845 GMT)
