-
ECB preview: it can only be a pause
Rising long-term yields and uncertainty concerning the conflict in Israel will force the ECB to remain on hold at this week’s monetary policy meeting. Since the beginning of September, 10-year US Treasury yields rose by roughly 90bps from 4.10% to 5% today, forcing European sovereign yields also higher. German 10-year yields aim to reach 3% for the first time since 2011, and Italian sovereign yields are at their highest since 2012 in the wake of the European sovereign crisis. Higher long-term rates are tightening the economy further, leaving little reason for another interest rate hike. At the same time, the ECB ... (full story)