The European Central Bank (ECB) and Bank of England (BOE) were both out with policy statements this morning.  Only one of those–the contentious rate hike from the BOE–hit the bond market initially.  The ECB didn’t hike rates, but during the press conference, ECB President Lagarde said that inflation surprises were causing unanimous concern on the council.  Markets view this as priming the pump for a rate hike at the next meeting.  Bonds reacted accordingly with shorter-term yields jumping abruptly in Europe, with a good amount of spillover to the US bond market.

Published On: February 3, 2022 / Categories: Mortgage News /