What Is Driving Euro Rates?
- By Bilal Hafeez
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- 2 min read
10y bund yields have risen 19bps over the past three months compared to the US’s 30bps. In swap space, Euro 10 yields have risen 29bps which is more comparable to the US swap yield change of 34bps. Swap rates better capture ECB expectations as we have seen euro 2y swap yields increase by 15bps compared to no change in 2y bunds. Therefore it is clear that the global repricing of rates has affected Euro markets as much as US markets.
10y bund yields have risen 19bps over the past three months compared to the US’s 30bps. In swap space, Euro 10 yields have risen 29bps which is more comparable to the US swap yield change of 34bps. Swap rates better capture ECB expectations as we have seen euro 2y swap yields increase by 15bps compared to no change in 2y bunds. Therefore it is clear that the global repricing of rates has affected Euro markets as much as US markets.
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