Germany’s benchmark 10-year Bund yield eased to -0.33% after touching on Tuesday its highest level since mid-July, as investors turned cautious ahead of Thursday’s ECB meeting.
Signs are emerging that the European Central Bank may start limiting the emergency bond-buying after the bloc’s inflation surged to a 10-year high in August and a slew of ECB officials including Austria’s Robert Holzman and Bundesbank boss Jens Weidman made hawkish comments.
ECB Governing Council member Robert Holzmann said the central bank could tighten policy sooner than many expect as inflationary pressures could prove to be persistent, while Bundesbank President Jens Weidmann warned inflation is at risk of overshooting the ECB’s projections as the temporary factors behind its recent spike could seep into underlying price growth.
