Eurozone bond yields remained steady during early trading on Wednesday following the latest round of comments by European Central Bank (ECB) policymakers.
Germany’s 10-year bund yield, the eurozone benchmark, was flat at 2.37%, while the two-year yield was up two basis points at 2.91%. Italty’s 10-year yield edged higher by one basis point to 4.18%, while the two-year yield was up two basis points to 3.52%.
During what has been a quiet period leading up to the next policy meeting, ECB executive board member Isabel Schnabel told a Belgian newspaper, “Given the high uncertainty about the persistence of inflation, the costs of doing too little continue to be greater than the costs of doing too much.” Dutch central bank chief Klaas Knot appeared to back further rate hikes, claiming that although inflation has remained resilient, stricter monetary tightening has had an effect.
Four ECB policymakers are scheduled to make statements on Wednesday, thereby providing observers with more perspective on potential actions that the ECB could take with its interest rate policy going forward. Since the start of the inflation crisis last year, the ECB has raised interest rates by a combined 375 basis points.