[Report: European Central Bank May Consider Rate Hike Options in June] Jussi Hiljanen of SEB stated in a report that a rate hike by the European Central Bank is a risk, but if the Middle East conflict persists, June is a more likely point for evaluation. The chief rate strategist expects that risks will remain tilted toward market expectations for the ECB's policy rate to rise further, which would push the short end of the German bond yield curve higher. He said: 'However, for a rate hike in April to materialize, energy prices may need to remain at current levels (or higher), market-based inflation expectations must rise further, and the consumer inflation expectations survey at the end of April must show a significant increase.' SEB forecasts that the two-year German bond yield will rise from Thursday's closing level of 2.585% to approximately 2.70%-2.80% over the next three months.