Germany’s 10-year bond yield briefly rose after the hike but was last at 1.58%, unchanged from prior to the decision. The two-year yield, sensitive to interest rate expectations, was up 2 bps to 1.10%, similar to before the decision.
Italian bond yields fell 1.5 bps to 3.8147. The closely-watched risk premium they pay over German peers was unchanged at 225 bps.
Money markets moved to price in another 49 bps of rate hikes at the ECB’s October meeting, compared to around 50 bps before the decision.
The euro briefly edged up but was last trading at around $1.0007, little changed from where it was trading just before the rate move. Euro zone bank stocks jumped and were up more than 1%, while the broader stock market wavered and was last down 0.1%. .
Source: Economy - investing.com
