Monetary policy stance remained very accommodativeLarge number of members held the view that current level of high inflation called for immediate further steps towards policy normalisationIt was argued, that for all practical purposes, three forward guidance conditions have been metA longer period of above-target inflation would lead to increased risk on upward de-anchoringIn such a circumstance, ECB could no longer afford to look through higher inflationThe view was taken that APP purchases had by now fulfilled its stated objectiveNonetheless, it is seen as wise to keep some two-sided optionality on policyFull accountThere are some hawkish mumblings based on the remarks above but recent ECB commentary does not suggest that policymakers are too keen to push the agenda. So, that is making things a bit confusing in my view. I wouldn’t say a lot has happened over the course of the past four weeks but it certainly has perhaps.If the ECB thought that rate hikes could do them some good, they definitely do not share as strongly a view on that now.

Headlines:Bond selloff takes a breather for the time beingEU full ban on Russian coal reportedly to be pushed back to mid-AugustTechnical issues stall EU’s attempt to ban Russian coal but the path forward is evidentJapan to release 15 million barrels of oil as part of IEA-led coordinated releaseChina reaffirms that it opposes all forms of official interactions between US and TaiwanPelosi visit to Taiwan stirs up US-China tensionsBOJ’s Noguchi: Merits of a weak yen on the economy outweighs the demeritsEurozone February retail sales +0.3% vs +0.6% m/m expectedUK March Halifax house prices +1.4% vs +0.5% m/m priorGermany February industrial output +0.2% vs 0.0% m/m expectedMarkets:GBP leads, AUD lags on the dayEuropean equities higher; S&P 500 futures up 0.2%US 10-year yields down 1.3 bps to 2.596%Gold up 0.1% to $1,928.30WTI up 1.5% to $97.63Bitcoin down 0.9% to $43,505Headlines were few and far between on the session as markets settled down on the week, with the bond market selloff cooling and equities finding a bit of a breather after two days of modest declines.Treasury yields are keeping lower while European indices are posting decent gains with S&P 500 futures also seen up 0.2%.If anything else, it just points to a bit of a pause in the recent momentum as the focus stays on the battle between central banks and inflation for the most part.In FX, the dollar was choppy but is now keeping little changed overall with EUR/USD moving down to 1.0865 from 1.0930 before sticking around 1.0890 levels at the moment.USD/JPY is little changed as the pair continues to trade sideways between 123.50 and 124.00 since yesterday.The aussie and the kiwi are laggards with the former stuck around 0.7475-90 against the dollar throughout the session.Fed speakers will be something to watch later on in the day, so keep your eyes and ears peeled in case.

The Merge, the most expensive NFT in the world created by digital artist Pak was sold for $91.8 million USD as nearly 30.000 NFT collectors rushed to get in on the action. And while these numbers leave many in shock and awe, the NFT craze is still far from being over. In fact, did you know that by simply owning an NFT you could be making passive income? There are many ways of having exposure to NFTs, so let’s dig in. What is an NFT? To put it in simple terms, NFT stands for Non-Fungible Token, which is cheeky way of saying that it is a completely unique token that is unable to be duplicated. Now, the version of NFTs which people are familiar with are jpegs, however, it is important to make the distinction that the NFT itself isn’t just the picture you are looking at, rather a token ID on the blockchain which is paired with the image URL and therefore represents the image you are looking at. This means that since there is no image data on the blockchain, what the token is doing is simply pointing to the image file, meaning that it could also point to several other different things such as domain names, the deed to someone’s house, and so forth, which is why they are extremely versatile and likely to revolutionize the very concept of ownership. Investing in NFTs directly While some take an active stance and speculate wildly on NFT markets, trading them much like NFT stocks, passive income is in fact possible too. So, yes, those avatars and cat jpegs and other NFT art might earn you a considerable amount of money if used right. Investing in NFT stocks If you aren’t an artist and find NFT markets confusing, there is another way you can gain NFT exposure: through NFT Stocks. Many companies out there have dwelled into NFTs, either by operating in their marketplace or selling them. Big names include Coinbase Global, Inc (COIN), Draftkings Inc. (DKNG) a sports betting and fantasy sports company, Chiliz (CHZ), and eBay Inc, (EBAY). Role of Blockchain stocks There are many publicly traded companies out there which incorporate blockchain tech into their operations, whether its directly or through the offering of blockchain-related services. Others simply play a role in the crypto industry either by focusing on crypto or fostering blockchain innovation. Some of the most established blockchain stocks are: Nvidia (NVDA), the leading manufacturer of GPUs and graphics cards, Block (SQ), previously known as Square, Mastercard (MA), and IBM (IBM). Where does passive income NFTs fit in? If speculative NFTs stock trading sounds like a FOMO-induced proposition, but there are clever new ways one can earn a steady stream of revenue from other NFT applications. Much like content can be monetized online, content makers can also make NFTs of their works and sell them with the promise that whoever will buy them will get a part of their advertising revenue. The core idea of a passive income NFTs is the notion that having a digital representation of physical asset adds value. As an example, let’s look at the entertainment industry. If an up-and-coming new band is about to release a new hit song they can monetize it on a popular streaming platform, meaning that they will earn a percentage every time someone buys it or streams it (via ads). However, if the artists decide to go on a tangent from traditional means, they can simply turn that song into an NFT and sell part of those monetary rights for a period (or in perpetuity), so the owner of the NFT would also receive his or her cut. This allows for the artists’ audience and fans to engage with the band, to have their skin in the game by investing in their project, and, more importantly, to earn rewards along the way. NFT monetization Accordingly, this logic makes it so that the concept of NFT monetization can be extrapolated into other areas such as social networks or video with creators on Youtube, Vimeo, Odysee or any other platform from the blogosphere, social influencers, and so forth. Consequently, investors can back the creators’ projects in a new and unique way and earn their fair share passively. Real life NFTs and their “leakage” into the real world seems inevitable, and even for those who are short on capital, there is ample opportunity for investment and a consistent, long-term stream of revenue. You just got to play your cards right.

2-year Treasury yields -6.7 bps to 2.435%
5-year Treasury yields -5.4 bps to 2.649%
10-year Treasury yields -2.8 bps to 2.581%
30-year Treasury yields -1.1 bps to 2.621%

That might be what is offering some respite to stocks, which are hoping to snap quite a modest two-day decline. European equities holding higher with US futures also up around 0.3% at the moment.
I’m not going to attribute much to the drop in bond yields today as it comes on the back of a four-day climb in Treasuries.
In the FX space, the dollar is mostly calmer in a bit of a choppy session but mostly holding little changed. The aussie and kiwi are the notable laggards but have kept near the lows for the day since Asia trading already.