An increase in ECB interest rates in July leads to a new increase in bond yields

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Bond markets are forecasting a rise in ECB interest rates in July with relative certainty, as the demand is now being raised by even the most moderate central bankers. More specifically, at least three interest rate hikes by the end of the year by the European Central Bank are proposed by the head of the Central Bank of France, François Villeroua. According to him, the ECB deposit acceptance rates, which are currently negative, should move to positive territory by the end of the year. According to Reuters, the French central banker intends to support this policy with his vote in the ECB board. The head of the Central Bank of Finland, Olli Rehn, was also in favor of raising the ECB interest rates today, proposing a 0.25% increase in the ECB key interest rate in July, so that we can reach 0% in the autumn.

In the domestic bond market and more specifically in HDAT, transactions of 218 million euros were recorded, of which 31 million euros related to purchase orders. The yield on the 10-year bond stood at 3.51% from 3.40% yesterday, compared to 1.12% of the corresponding German bond, resulting in a margin of 2.39% from 2.33% yesterday.

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In the foreign exchange market, the euro is slightly lower against the dollar after the data from the US labor market announced today. So early in the afternoon it was around $ 1.0563. from the level of $ 1.0557 that the market opened.

The indicative price for the euro / dollar exchange rate. announced by the ECB reached $ 1.0570

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Source: Capital

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