The European Central Bank said that the first rate hike in eleven years will take place in July, but the euro appears to have priced this in already. Meanwhile, the European bond market is experiencing a selloff following the ECB meeting. The yield on the German 10-year Bund hit an 8-year high of 1.45%, while the yield differential between the 10-year Treasury and the Bund shrank to around 160 basis points, setting new year-to-date lows. The yield spread between the Bund and the Japanese 10-year government bond has also reached fresh highs since 2013. Will the euro's rally against the yen continue? (full story)