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E C B Mulling Over A Possible .50% Hike


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http://www.iii.co.uk/news/?type=afxnews&ar...&action=article

LONDON (AFX) - European government bonds were sharply lower following further hawkish comments from European Central Bank president Jean-Claude Trichet and tracking falls in the US Treasury after the Federal Reserve suggested last night that US interest rates could rise further.
"The underlying sentiment in bonds was bearish anyway, but the Fed statement just reinforced that. Then on top of that we have had more hawkish comments from the ECB today," said CIBC analyst Audrey Childe-Freeman.
Speaking earlier today, Trichet said the ECB is "on alert" and "vigilant" in the face of high oil prices and reiterated that interest rates "remain close to their lowest levels in decades", confirming that euro zone rates will rise next month.
In addition to solid first quarter euro zone GDP data earlier today, the comments will keep alive market speculation that the ECB may decide to hike interest rates by
50 basis points rather than 25 in June
.

Market momentum seems to be pointing toward increasingly sharper rate hikes which cannot be good news for interest rate sensitive assets. :)

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http://www.iii.co.uk/news/?type=afxnews&ar...&action=article

In addition to solid first quarter euro zone GDP data earlier today, the comments will keep alive market speculation that the ECB may decide to hike interest rates by
50 basis points rather than 25 in June
.

betfair odds of 0.5 hike have dropped from 40/1 to 8/1 over the last couple of weeks. So a very definate chance. 0.25 hike is nailed on at 8/1 on. Beauty

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