The probability of a European Central Bank rate hike rises to 100%, German bond yields surge

Currency market data shows that the probability of the European Central Bank raising interest rates this year has reached 100%, a reversal from a week ago when "the probability of a rate cut was higher than a rate hike." The yield on Germany's two-year government bonds has risen by 30 basis points to 2.30% since last Friday's close, marking its worst weekly performance in three years. Bond yields in the United States, Australia, Canada, and the United Kingdom have also seen similar increases. Lucile Flight, Managing Director of Rates Trading at Barclays, stated that the European Central Bank will take action in response to energy price shocks to maintain price stability.