Forex: Rising interest rates on Eurozone bonds ahead of the ECB interest rates decision

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The government bond rates in the Eurozone have been moving at significantly high levels today, as investors anticipate a 0.25% increase in the interest rates to be imposed by the ECB 0.25% on Thursday, April 7. Analysts expect the ECB’s key rate will rise to 1.25% while until the end of the year it will reach 1.75%.The yields of the 10-year German benchmark bond rose for the ninth consecutive session, two basis points below the highest level in 15 months. Debt struggling Eurozone countries, the 10-year securities rates rose by 0.04% to 8.56% in Portugal and by 0.04% to 12.80% in Greece

In contrast to the above, a downward move in Interest rates is observed in Italy and Spain, as investors believe their economic condition is far better than the sinking Greece, Portugal and Ireland and therefore there is no significant risk.