Rising CPI in German Industrial State Fuels Expectations of ECB Interest Rate Hike

Financial website Forexlive indicates that traders are now considering a 61% likelihood of a 25-basis-point interest rate hike next month, up from yesterday’s 50%.

Earlier, the German industrial state of North Rhine-Westphalia recorded a 5.9% CPI for August, up from the previous 5.8%. This often sets the tone for economic data in other states to follow, so we await further developments.

The 10-year German government bond yield also rose nearly 5 basis points on the day, currently at 2.559%.

Following yesterday’s auction, the bond market has shown some easing overall, and the 10-year government bond yield has also risen by 2 basis points to 4.141%.