COMMERZBANK rates strategist Rainer Guntermann said money markets expect the ECB
to hold rates on Thursday and President Lagarde has not precommitted to a
September hike, a dynamic that could ease euro-area government bond markets. He
added Lagarde may still leave the door open to a September move. German 10-year
Bund yields, near this year’s high around 3.2%, should provide support, while
tomorrow’s PMI and recent energy-price swings add uncertainty to the rate
outlook.
