A Societe Generale rates strategist says markets have fully priced an ECB rate hike in September and anticipate a further move in March next year, leaving current hawkish pricing broadly sufficient. Two-year ECB rate expectations have risen to the top of the recent range, implying the front end of the euro-area government bond yield curve offers carry in mid‑summer and is a favourable entry point to reposition into a euro-area curve steepener.

2026-07-17

A Societe Generale rates strategist says markets have fully priced an ECB rate hike in September and anticipate a further move in March next year, leaving current hawkish pricing broadly sufficient. Two-year ECB rate expectations have risen to the top of the recent range, implying the front end of the euro-area government bond yield curve offers carry in mid‑summer and is a favourable entry point to reposition into a euro-area curve steepener.