Still QT plus Renewed Rate Hikes at the ECB despite Surging Bond Yields in the Euro Area

Source: Wolf Street

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DW NOTE

The ECB is tightening into a bond selloff — hiking rates while yields surge and QT accelerates. That's the central bank equivalent of slamming the brakes while the car is already skidding. Inflation may justify the policy, but the collateral damage shows in peripheral spreads. When you've spent a decade training markets to expect support, withdrawal doesn't come cheap.

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