0622 GMT - A rate hike by the European Central Bank is a risk, but June is a more likely checkpoint if the conflict in the Middle East continues, SEB's Jussi Hiljanen says in a note. The chief rates strategist expects risks to remain skewed towards some further increase in markets' ECB policy‑rate expectations, which would push the short end of the German government bond yield curve even higher. "However, for an April hike to materialize, energy prices would likely need to stay near current levels (or higher), market‑based inflation expectations increase further and the consumer inflation expectations survey in late-April show a clear uptick," he says. SEB expects the two-year German Schatz yield to rise to around 2.70%-2.80% over the coming three months from Thursday's close at 2.585%. (emese.bartha@wsj.com)
(END) Dow Jones Newswires
March 20, 2026 02:22 ET (06:22 GMT)
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