[Market Update] Bunds snap lower as yields resume upside following ECB source reports that officials see the possibility of rate hike at April meeting; EUR/USD little changed
The latest reports suggest potential hawkish sentiment from the ECB, contributing to rising bund yields as traders price in a greater likelihood of a rate hike by the May meeting.
ECB tells banks to identify the leverage providers on Significant Risk Transfer (SRT) deals
European Closes: Euro Stoxx 50 -2.10% at 5,616, Dax 40 -2.84% at 22,860, FTSE 100 -2.43% at 10,055, CAC 40 -2.03% at 7,808, FTSE MIB -2.42% at 43,661, IBEX 35 -2.38% at 16,887, PSI -2.06% at 8,947, SMI -2.39% at 12,454, AEX -2.24% at 978
[Market Update] Bunds snap lower as yields resume upside following ECB source reports that officials see the possibility of rate hike at April meeting; EUR/USD little changed
ECB officials see possibility of rate hike at April meeting, according to sources cited by Bloomberg
US President Trump says going to China very quickly; Japan has "edgy" relationship with China; China trip postponed for about a month and a half; China trip has been reset
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- Traders now see more than 60% chance of ECB hike by may; roughly 70 bps of hikes priced for 2026, up from around 50 bps on Wednesday
This shift in expectations could indicate a tightening path from the ECB that may impact the euro and broader fixed income markets, as market participants adjust their forecasts accordingly.
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