UniCredit Bank: Eurozone government bond yields may face mild upward pressure in the near term

On April 3, UniCredit Bank research fixed income strategist Francesco Maria Di Bella said that the ECB is expected to raise interest rates by another 75 basis points, which will put some upward pressure on euro zone government bond yields. Bund yields are expected to rise from current levels, especially on short-term bonds, due to a cumulative 75 basis point hike in deposit rates and easing investor concerns, he said. Still, yields are unlikely to rise back to or exceed levels seen on March 8, when investors expected the ECB deposit rate to peak at 4.25 percent.