Euro Zone Yields Hold Steady as ECB Nears 25-Basis-Point Hike
Updated
Updated · Reuters · Jun 9
Euro Zone Yields Hold Steady as ECB Nears 25-Basis-Point Hike
3 articles · Updated · Reuters · Jun 9
Summary
Germany's 10-year yield held at 3.051% on Tuesday, while the two-year slipped 2.5 basis points to 2.677% after easing Israel-Iran tensions calmed fears of a deeper energy shock.
Iran and Israel said they would end military operations after a U.S. appeal, raising hopes the Strait of Hormuz could reopen and ease pressure on oil supplies and inflation.
The ECB is expected to lift its deposit rate by 25 basis points to 2.25% on Thursday, which would be its first move in a year after the Iran war reignited price pressures.
Money markets still price 68 basis points of tightening by year-end, implying one more quarter-point increase and better than 70% odds of a third hike.