Markets also awaited Federal Reserve Chair Jerome Powell's testimony on Tuesday and job data on Friday. (Reporting by Stefano Rebaudo, editing by Danilo Masoni)
Messaging: stefano.rebaudo.thomsonreuters.com@reuters.net ));)) March 6 (Reuters) - German short-dated government bond
yields reversed an earlier fall and hit fresh multi-year highs
on Monday after comments from European Central Bank policymaker
Robert Holzmann.
Holzmann said he hoped that peak interest rates would have
been reached within the next 12 months, adding that the central
bank needed to be more aggressive in reducing its balance sheet.
Germany's 2-year yield , most sensitive to
short-term changes in policy rate expectations, rose 3.5 basis
points (bps) to 3.243%, after hitting its highest since October
2008 at 3.26%.
Germany's 10-year yield , the euro zone's
benchmark, was down 3 bps at 2.688%. It hit its highest since
July 2011 at 2.77% last week.
The spread between Italian and German 10-year yields widened to 181 bps, after hitting a day's low at
around 177 bps.
Forwards on the ECB euro short-term rate still peaked in
November 2023 at around 3.95% EUESTECBF=ICAP, implying a depo
rate at 4.05% by year-end.
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