Lagarde Pivots on ECB Rate Hikes as Switch in Guidance Seen Soon (US 10Y Yield Up 5BPS, Mortgage Rates To Follow)

Its the same all over the WESTERN world as sovereign yields are starting to rapidly rise.

(Bloomberg) — European Central Bank President Christine Lagarde is no longer ruling out an interest-rate hike this year, a pivot toward the tightening stance of global peers that officials privately see materializing with a shift in policy guidance as soon as next month. 

Investors brought forward bets on ECB action as the monetary chief delivered surprisingly hawkish comments citing unexpected record inflation data, contrasting with an earlier statement on Thursday that kept intact its formal view that price increases will ease. 

She spoke after policy makers agreed that it’s sensible no longer to exclude a rate move in 2022, and that bond buying could end in the third quarter, according to officials familiar with their thinking who asked not to be identified because such discussions are confidential. An ECB spokesman declined to comment. 

The result of Lagarde’s jaw boning?

US mortgage rates are rising in anticipation of the US following Largarde’s lead. Powell and the Gang continue to lag.

One thought on “Lagarde Pivots on ECB Rate Hikes as Switch in Guidance Seen Soon (US 10Y Yield Up 5BPS, Mortgage Rates To Follow)

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