German Bundesbank apparently didn't get the memoforward guidance was not an "unconditional commitment" and indicated that the ECB may have t
The European Central Bank even began providing forward guidance stating they would keep rates down for an extended period
But the German Bundesbank apparently didn't get the memo. This morning, in their monthly statement, the Bundesbank said the forward guidance was not an "unconditional commitment" and indicated that the ECB may have to raise rates "if greater inflation pressures emerge." Huh? What inflation pressures?
This is one reason why global bond rates have risen. Here in the U.S., 10-year yields this morning hit 2.87 percent, another two-year high.
Also, over the weekend there was more chatter that Larry Summers has a better chance than he had a few weeks ago to become Fed chairman. Many believe Summers would accelerate the pace of Fed tapering, which is also causing problems for yields this morning.