Euro zone yields rise after data, markets raise bets on September ECB rate hike

Euro zone government bond yields rose on Wednesday as the first inflation data from German states fuelled expectations the European Central Bank (ECB) tightening cycle won’t be over soon.

In North Rhine Westphalia (NRW), Germany’s most populous state, consumer prices in August rose 0.5% month-on-month and 5.9% year-on-year.

Christoph Rieger, head of rates research at Commerzbank, said that was “above expectations for German CPI”.

Spain’s consumer prices rose 2.6% year-on-year in August, while core inflation, which strips out volatile fresh food and energy prices, was up 6.1% year-on-year, down from 6.2% in the period through July.

Source: Reuters