4/9/2021 12:45:13 PM GMT US yields have taken a step back this week causing a weaker USD. Some profit-taking might also play a role for the USD following a few very strong months. In Europe, bunds moved sideways. Equities have continued to edge higher on a global scale and US markets hit new highs. We got minutes from both Fed and ECB this week, none of which provided much news. Overall, the FOMC minutes confirmed our view that the Fed bought time at its March meeting, as the policymakers think it is too early to change rhetoric amid the pandemic. At the March meeting, ECB had a slightly optimistic tone on the economic outlook and came with some hawkish comments to the PEPP implementation. The market impact was insignificant in the short term, but we think it willtake a significant worsening of the risk appetite for ECB to step up purchases. As such it is in our view, right now more likely that ECB will have to end PEPP rather than extend it.