Putin says the Russians control Mariupol.  Europe and Oil Still in the Green Zone – Invasion of Ukraine

Putin says the Russians control Mariupol. Europe and Oil Still in the Green Zone – Invasion of Ukraine

High interest rates in the eurozone

Eurozone interest rates are rising, reflecting a bet by investors pointing to the European Central Bank (ECB) raising rates by 75 basis points through the end of the year, an idea bolstered by statements made by European Central Bank Council member Martins Kazak, who advocated This Wednesday, the institution may raise interest rates as early as July.

The interest on German bonds – a standard for the eurozone – increases by 4.3 basis points to 0.894%. Since January 31, the yield on German bonds with this maturity has been in positive territory, having crossed the 0.8% threshold on April 11.

Italy recorded the largest rise in 10-year bond yields, increasing 4.7 basis points to 2.552%, while the yield on French debt increased by 2.8 basis points to 1.358%.

In the Iberian Peninsula, the interest on Spanish ten-year bonds rose 4.6 basis points to 1.842%, while the yield on Portuguese debt with the same maturity rose 4.4 basis points to 1.788%. Since February 7, interest on 10-year national bonds has exceeded 1%, after having crossed the psychological limit of 1.8% on April 14.

Inflation continues to tighten its grip on central banks. With the consumer price index hitting new highs, central bank officials are ready to tighten monetary measures. Within the European Central Bank, many members are calling for more urgent intervention, as is the case with Martins Kazaks, who argues that the institution could raise interest rates as early as July.

In line with this thinking, money markets expect a greater than 50% probability of a 25 basis point rate hike in July, followed by two more possibilities of similar size in September and December.

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