Two-year bond yields in France and Italy soared almost 10 basis points each, Italy's 10-year bond yield rose to its highest since March 2020 and borrowing costs across the bloc headed back towards multi-year highs. Money markets, which had eased rate hike bets following last Thursday's ECB meeting, were back to pricing in over 70 basis points of tightening - the equivalent of almost three 25 bps ECB rate hikes - by year-end. Germany's two-year bond yield was up 10 bps on the day at 0.16pc, within sight of roughly eight-year highs hit recently. Italian 10-year bond yields rose to as high as 2.58pc , marking their highest level since March 2020 when the COVID-19 outbreak roiled markets. ECB President Christine Lagarde and Federal Reserve Chair Jerome Powell are due to speak later in the day.

Source: Irish Independent April 21, 2022 20:18 UTC