Expectations of European Central Bank interest rate hike rise to 100%, German bond yields rise sharply

According to money market data, the likelihood of the European Central Bank raising interest rates this year has reached 100%, reversing the situation a week ago where the probability of a rate cut was higher than that of a rate hike. The yield of German two-year treasury bond rose 30 basis points to 2.30% since the close of last Friday, the worst week in three years. The bond yields of the United States, Australia, Canada, and the United Kingdom have also seen similar increases. Lucile Flight, Managing Director of Interest Rate Trading at Barclays Bank, stated that the European Central Bank will take action against energy price shocks to maintain price stability.