ECB's Sleijpen says ECB is very vigilant on possible second-round effects, ECB likely to have more information on second-round effects in April, but data will be limited

The comments from ECB's Sleijpen highlight the Bank's heightened vigilance regarding potential second-round effects from energy prices, suggesting concern that inflationary pressures might persist and spread within the economy. This indication of caution could mean that the ECB may adopt a more hawkish stance if further data corroborates these concerns, which might influence market expectations for future policy moves and yield curves as we approach the next meeting.