2023-06-15 13:02:22
The European Central Bank (ECB) raised its policy rate and signaled further interest rate hikes, pushing the euro higher and eurozone government bonds lower.
The euro rose 0.5% against the dollar to $1.0881, its highest level since mid-May. Against the yen, it rose 1.1% to ¥153.39, the highest since 2008. Yields on two-year German bonds rose 14 basis points to 3.16%, close to a decade high reached earlier this year.
Traders have raised their expectations for an ECB rate hike. Money markets are pricing in a 70% chance that the ECB will raise interest rates to 4% in October, up from 50% before the policy announcement.
news-rsf-original-reference paywall">Original title:German Bonds Drop as ECB Hikes, Revises Inflation Forecasts(excerpt)
(This article partially uses automatic translation)
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