Central Banks
Prospect of a Record ECB Rate Hike Sends European Bonds Tumbling
- Some officials want to talk three-quarter point move: Reuters
- Traders now see almost 50% odds of a bigger hike in September
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European bonds slumped as traders priced in a more aggressive pace of rate increases by the European Central Bank, betting on a fifty-fifty chance of a three-quarter point hike at its September rate decision for the first time.
Such a move would be the biggest-ever single increase by the ECB and would take its key interest rate to 0.75%, the highest level since November 2011. The shift comes after Reuters reported that some officials want to discuss a hike of that magnitude.