Euro zone yields jump as markets reassess SVB collapse on rate outlook

Published by
Reuters UK

By Stefano Rebaudo and Samuel Indyk LONDON (Reuters) – Euro zone government bond yields rose on Tuesday as investors reckoned the recent repricing of the European Central Bank tightening path on fears about the impact of Silicon Valley Bank’s (SVB) collapse might have gone too far. Expectations for the peak of the ECB deposit rate dropped to around 3.4% on Monday from 4.1% last Thursday, with markets betting central banks would soften their policy stance as they assess financial stability risks. On Sunday, U.S. regulators took measures to stem the consequences of SVB’s collapse and shore up co…

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