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Southern European bond yields soar on ECB rate hike signal

reuters.com · 06/09/2022 08:59
Southern European bond yields soar on ECB rate hike signal

- Bond yields across southern Europe rose sharply on Thursday after the European Central Bank flagged a string of interest rate rises ahead to tame inflation, with Italian 10-year borrowing costs up as much as 20 basis points.

As ECB president Christine Lagarde spoke, Italian 10-year yields rose past 3.5% for the first time since 2018 IT10YT=RR, while the Greek equivalent was up 12 bps at 4.1%, the highest since 2020 GR10YT=RR. The Spanish 10-year yield was 14 bps at 2.62% ES10YT=RR, the highest since 2014.

Germany's 10-year bond yields also extended their rise to a new June 2014 high at 1.47%, last up 9 bps on day DE10YT=RR. The euro too extended gains and was up 0.5% at $1.07690 at a one-week high EUR=EBS.


(Reporting by London Reuters team; writing by Sujata Rao; Editing by Dhara Ranasinghe)

((sujata.rao@thomsonreuters.com; +44 207 542 6176;))