Market participants are now pricing in a roughly 67bp hike from the September 8 monetary policy meeting, implying a 100% chance of a 50bp hike and 67% of a 75bp hike. points.
On Friday, the assumption of a three-quarter point hike was credited with just a 24% probability ahead of Archyde.com reports that several members of the Governing Council want to discuss it at the meeting.
And several of them pleaded this weekend in favor of a sharp rise in rates to prevent an anchoring of inflation.
This trend favors the rise in government bond yields: that of the two-year German Bund, which is particularly sensitive to key rate expectations, rose by around 15 basis points to 1.126%, its highest since June 22, and the ten years more than ten points to 1.508%, the highest since June 30.
The ten-year French takes more than 13 basis points to 2.137%, also at its highest for two months.
