Euro zone bond markets brace for ECB shift, stimulus scheme nears end

European government bond yields in the euro area edged up on Thursday as the European Central Bank prepared to debate whether to end its unprecedented stimulus scheme this year. On Wednesday the US Federal Reserve raised interest rates as expected, and signalled two more hikes this year, citing higher inflation.

Two-year US Treasury yields touched their highest in nearly a decade and 10-year bond yields hit 3-week peaks after the Fed move, narrowing the gap between the two to the tightest since at least March 2010.  ALSO.

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