ECB's Villeroy says ECB will raise rates if second-round effects are seen and not seeing sufficient signs yet to raise rates

ECB's Villeroy's comments suggest a cautious stance on rate hikes, indicating that while the central bank is open to future increases, it currently does not see enough inflationary pressure to warrant a change. This aligns with a more dovish approach compared to what might be priced in the market, potentially impacting the euro and influencing fixed income sentiment as traders reassess their rate outlooks.