Europe Bond Rout Intensifies as Traders Bet on Faster ECB Hikes
- Ten-year Italian yield rises past 4% for first time since 2014
- Traders wager on 125 basis points of ECB hikes by October
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A selloff in European government bonds gathered momentum as traders priced in a more aggressive pace of tightening from the European Central Bank amid mounting concern over the deteriorating inflation outlook worldwide.
Italian bonds tumbled for a fourth day as they lead losses across the region, with 10-year yields pushing past 4% for the first time since 2014. That drove the spread over German equivalents, a key gauge of risk, to as much as 240 basis points, the widest level since May 2020.