Elmar Voelker, senior fixed-income analyst at Landesbank Baden-Württemberg, said
a spiral rise in bond yields is becoming increasingly tied to ECB
monetary-policy considerations. He said the resulting tightening in financing
conditions has effectively produced a monetary-tightening effect, which argues
against a hasty further increase in key rates. However, he added that staff
forecasts updated after last week’s September meeting suggest the ECB Governing
Council is inclined to tighten further under current conditions.
