European sovereign debt pressured as traders price ECB hikes through early 2027 - Investing.com
European sovereign debt pressured as traders price ECB hikes through early 2027 - Investing.com
Source: Investing.com
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DW NOTE
The ECB is pricing in rate hikes through early 2027 while the Fed is about to raise today with oil at $102 and the Strait of Hormuz closed for two months. European sovereign spreads are widening because bond markets know what central bank forward guidance won't admit: you cannot tighten into a supply shock without breaking something, and Europe imports more energy than America does.