German Bond Yields Hit 15-Year High as Oil Spikes Before ECB

Bloomberg··Read original
4▲2 ▼0Impact / 5
Summary · why it matters

German bond yields rose to the highest level since 2011 as surging energy prices and mounting inflation expectations fueled bets on interest-rate hikes ahead of the European Central Bank's decision later Thursday. German 10-year government borrowing costs climbed as much as three basis points to 3.21 percent. Traders are pricing almost two quarter-point hikes by the ECB by year-end, while swaps imply a 75 percent chance that the Federal Reserve raises interest rates twice this year. Despite the jump in crude prices, the ECB will probably keep its deposit rate on hold at 2.25 percent on Thursday, though a surprise hike cannot be fully ruled out according to Francesco Pesole, a strategist at ING Groep NV. Brent crude is approaching 100 dollars a barrel and European gas prices closed at the highest since 2023 this week as the conflict between the US and Iran escalated.

Impact on assets 4

Digital Finance & Tokenization▲ · 1 stocks
BlackRock Inc
BLK
± MixedMonetaryrelevance

Rising bond yields and rate hike expectations may pressure asset valuations, but BlackRock is not directly mentioned.

Financials▲ · 1 stocks
ING Group NV ADR
ING
± MixedMonetaryrelevance

ING strategist quoted on ECB rate expectations, but no company-specific impact

Others▲ · 2 stocks
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