Euro zone bond yields stay higher, euro dips as ECB stays on hold
TLT•Markets price in more ECB hikes
Markets price in 24 bps of hikes from the ECB by September and 49 bps of hikes by December, in line with expectations before the ECB's decision.
The euro extended falls and was last down 0.25% at $1.1384 EUR=, while European stocks were down 1% .STOXX.
The ECB raised rates by 25 bps in June.
Bond yields remain elevated after ECB decision
LONDON, July 23 (Reuters) - Euro zone government borrowing costs remained higher and the euro fell on Thursday after the European Central Bank held rates steady, as widely expected, and left room for more tightening in the coming months.
Germany’s 2-year bond yield DE2YT=RR, which is sensitive to interest rate expectations, was last up around 2 basis points at around 2.87%.
It hit its highest since July 2024 earlier in the day as traders bet higher oil and gas prices could lead to more aggressive policy tightening from the ECB, before paring back some of that advance ahead of the decision.
