Ahead of tomorrow’s meeting of the ECB Governing Council, bond markets have changed today. In most of them, bond prices declined slightly, pushing yields higher as investors expect the ECB to continue raising interest rates by another 0.5% tomorrow.

Consequently, interest is focused on the rhetoric that ECB President Christine Lagarde will use on the inflation path.

However, it is noted that the rate of inflation in the euro area is downward and in January for the third month in a row it has been declining to 8.5% from 9.2% in December.

However, decisions in the ECB are made not only on the basis of accounting data on the course of inflation, but mainly in accordance with forecasts of its further course.

The yield on Greek 10-year bonds was 4.30% from 4.29% compared to 2.28% on the corresponding German bonds, resulting in a spread of 2.02% from 2.01 yesterday.

In the foreign exchange market, the euro moves higher against the dollar today, breaking the $1.09 barrier, as the European currency traded at $1.0922 in the morning from $1.08798 that opened the market. The indicative euro/dollar rate announced by the European Central Bank was $1.0894.

Source: RES-IPE