ECB Meeting Sparks Rate Hike Bets Amid Iran War Uncertainty
Traders are betting on two rate hikes by year-end before the European Central Bank's upcoming meeting.
The euro zone government bond yields have hovered near multi-year highs as traders price in these rate increases and a deposit rate of 3% by late 2027.
The ECB is widely expected to tighten its policy while reiterating its data-dependent stance amid the ongoing Iran war.