Interest money

Money markets ramp up bets on ECB rate hike after Fed

LONDON, March 17 (Reuters)Eurozone money markets on Thursday priced a total of 50 basis points of rate hikes from the European Central Bank this year, raising bets on rate hikes a day after the Federal Reserve announced several rate hikes future.

Money market futures dated from ECB policy meetings showed five 10 basis point interest rate hikes priced in by the end of the year, for a total of 50 basis points. That compares to around 44 basis points on Wednesday. IRPR

The Fed raised rates for the first time since 2018 on Wednesday and outlined an aggressive plan to push borrowing costs to restrictive levels next year in a pivot of the fight against the coronavirus pandemic to counter risks. economic problems posed by excessive inflation and the war in Ukraine.

At the start of trading, eurozone borrowing costs also rose, with the yield on the 10-year German Bund hitting 0.408% DE10YT=RR its highest level since the end of 2018.

(Reporting by Dhara Ranasinghe and Elizabeth Howcroft; Editing by Saikat Chatterjee)

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