Eurozone bond yields hit lowest weekly sell-off since March amid higher-for-longer rate expectations
Government bond prices fell sharply in Europe, marking the worst weekly selling surge since March. The move follows a recent interest rate hike by the European Central Bank and coincides with upcoming inflation data that could prompt further increases from the Federal Reserve and Japan.
Eurozone government bond yields recorded their steepest weekly sell-off starting in March this year. Bond prices across the region dropped on Friday as global debt markets registered the worst weekly selling wave since the escalation of tensions involving Iran, driven by soaring energy prices that pressure central banks to accelerate anti-inflation moves. The European Central Bank raised interest rates by 0.25 percentage point on Thursday as expected, while simultaneously lifting inflation forecasts and cutting growth expectations. Data released late Friday regarding US consumer prices may reinforce bets that the Federal Reserve will hike rates at its upcoming meeting. A parallel schedule includes an anticipated rate increase by the Bank of Japan, which also convenes this week. Yield returns across the seven largest global economies recorded their highest weekly rise for the current period.
