It is an understatement to say that the declarations of Christine Lagarde are eagerly awaited by the markets. The President of the European Central Bank will speak on Thursday at the traditional press conference following the Governing Council meeting. This time, the exercise will take place in a very specific context. That of a sudden rise in rates ten days ago, which even saw the yield on French 10-year bonds briefly return above 0%.
” The level of nervousness is still palpable in the European bond market. As proof, the new surge of the German 10-year which jumped nearly 6.5 basis points to reach -0.29% », Testifies Cyril Regnat at Natixis. Before warning: ” the ECB will have to send a strong message to the markets, unambiguously, indicating that this rate hike is premature. Otherwise, the German 10-year could return to positive territory. “