Euro and bond yields lifted by ECB official saying half-point rate hike is possible

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Euro and bond yields lifted by ECB official saying half-point rate hike is possible
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The euro rallied on Tuesday, helped by a broader market rally as well as comments from a European Central Bank policymaker in which he said a half-point rate...

The euro rallied on Tuesday, helped by a rise in bond yields as well as comments from a European Central Bank policymaker in which he said a half percentage point interest rate hike was possible.

Klaas Knot told a Dutch television program said he favors a quarter-point rate hike, but would support a half-point increase if new data suggest inflation is broadening further or accumulating. While regarded as one of the most hawkish voices on the ECB, Knot’s was the first to broach a half-point increase.

The... The euro rallied on Tuesday, helped by a rise in bond yields as well as comments from a European Central Bank policymaker in which he said a half percentage point interest rate hike was possible. Klaas Knot told a Dutch television program said he favors a quarter-point rate hike, but would support a half-point increase if new data suggest inflation is broadening further or accumulating. While regarded as one of the most hawkish voices on the ECB, Knot’s was the first to broach a half-point increase.

The yield on the Italian 2-year bond TMBMKIT-02Y shot up 12 basis points, to 0.92%. The yield on the German 2-year bund TMBMKDE-02Y rose 13 basis points, to 0.27%.

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