Eurozone Markets Bet on Two Rate Hikes Ahead of ECB Meeting

Markets in the Eurozone are anticipating two rate hikes by the end of 2026, according to traders. This comes as the European Central Bank (ECB) is expected to tighten its policy at an upcoming meeting.

The ECB's data-dependent stance has investors closely watching developments in Iran, where a war is ongoing.

Brent crude oil prices have rallied towards $100 per barrel, while natural gas prices have hit a 3.5-year high. The 'crack spread', which measures the margin between refined products and crude oil, is also being monitored.

Germans' 10-year bond yield has reached its highest level since April 2011, hitting 3.38% after rising by 2 basis points from the previous day's high of 3.3982%.