European Union (EU) said in a statement on Friday that it was “deeply concerned” about the situation in the European Union (EU) and said it was “deeply concerned” about the situation in Ukraine.
Bond production in Italy, the key beneficiary of the ACB bond purchase incentive, has risen above 20 points and German 10-year production has reached a three-week high.
As vulnerabilities hit the world markets, the euro and stocks weakened, unable to benefit from the ECB’s astonishing tone.
According to the ECB, bond purchases are lower than previously planned and will end in the third quarter based on economic data.
It has reduced inflation and raised inflation.
“Lagarde may be asking for more options and today’s adjustments are not narrowing down, but the real message is falcon,” said Arne Petimezas, senior analyst at AFS Group.
“They’re shrinking very fast. And Lagarde is really saying: ‘We will walk unless inflation is so bad or there is something wrong with the markets.’
Germany’s double-digit production, interest rate, traded higher and fell by more than 17 bps to -0.35%. For the first time since February 28, five-year products have changed positively, and 10-year total yields have increased to 0.30%, the highest since February 16 DE10YT = RR, DE5YT = RR, DE2YT = RR.
The ECB has indicated that interest rate adjustments will take “some time” and “gradual” after the end of the bond purchase.
Again, the financial markets in December offered IRPR a 45 bps ECB increase, 35 bps before the ECB decision and first, a 10-point trip to July, compared to September before the decision.
The most eye-catching activity was in Italy, with two-year yields up 21 bps by 0.18%, down -0.05% earlier on Thursday. IT2YT = RR
Italy’s 10-year output rose 24 bps to 1.92%, pushing the Italian / German production gap to 162 bps before the summit about 150 bps. DE10IT10 = RR
ING high interest rate strategist Antoine Buvet said, “The rate is right to jump, and especially since the start of the war in Ukraine, the tightening (expansion) has focused on ECB normalization.”
The long-term Euro zone inflation is expected to fall to 2.16% earlier on Thursday and close to 2.05%.
Meanwhile, the euro has fallen, leaving early gains after the ECB statement. With $ 1.1017 EUR = EBS 0.5% lower, the recent US inflation rate is expected to rise next week due to the rising dollar.
Euro Zone Shares: STOXXE 1.4%, Bank Shares. 383 BPS ITEXO5Y = MG
“We still forecast only a 25 bp (ECB) increase this year, possibly in December, but accelerated tightening in 2023 is expected to significantly improve the eurozone,” said Frederick Ducrozet, a strategic wealth management strategist.