Eyes on ECB Speakers as Euro Bond Yields Continue Rise

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AMSTERDAM, Feb 25 Reuters Euro zone bond yields continued their rise on Thursday, tracking U.S. Treasuries higher, as investors watch the European Central Bank for further clues on how it will respond to the recent rise in bond yields.

Prospects for more U.S. fiscal stimulus have driven reflation bets across markets, pulling up global bond yields, led by U.S. Treasuries.

In the euro area, that has set German 10year yields, the regions benchmark, for their biggest monthly rise since January 2018, but the move in the bloc is seen as less justified given its weaker economic outlook relative to the United States.

Any impact from a verbal intervention on Monday by ECB chief Christine Lagarde proved shortlived. After falling that day, the yield is still up 4 basis points this week. Touching its highest since June 2020 at 0.264, it was last up 3 basis points at 0854 GMT.

The European Central Bank will fight any big increase in real or inflationadjusted interest rates as it could choke off the blocs economic recovery, ECB board member Isabel Schnabel told Latvian news agency LETA.

The banks chief economist Philip Lane is due to speak at 1045 GMT, followed by board members Luis de Guindos at 1500 GMT.

Everybody will be looking to see do they follow up and add or underline… the note that Christine Lagarde made earlier this week as regards to following nominal yields. So wed want to see if theres any additional concern voiced by these speakers, said Richard McGuire, head…

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