Negative climate in the bond markets today due to the publication of the minutes of the last meeting of the Board of Directors European Central Bank showed that inflationary pressures are much stronger.

ECB Chief Economist Philip Lane has calculated that inflation will remain off target for a longer time. He said the ECB’s forecasts for September 2022 (to be announced today by Eurostat) showed a significant upward revision in inflation through the third quarter of 2023, but no more.

With these data in mind, the ECB’s chief economist proposed a 75 basis point rate hike to speed up the transition from highly accommodative interest rates to levels that ensure a timely return to inflation. to its medium-term goal of 2%. According to the minutes, many central bankers agreed with Mr. Lane’s position, voting in favor of a proposal for a 75 basis point hike.

HDAT recorded transactions worth 8 million euros, of which 6 million euros were related to purchase orders. The 10-year bond yielded 4.74% from 4.72% at yesterday’s close versus 2.08% for the corresponding German bonds, resulting in a spread of 2.66% from 2.71%.

On the foreign exchange market, the euro is falling against the dollar, leaving the European currency trading at $0.9821 in the morning from $0.9859 at market open. The indicative price of the EUR/USD exchange rate announced by the ECB was $0.9860.

Source: RES-IPE