The bond markets stabilized today, one day after the ECB raised interest rates by 0.5% to 3%.

However, the apparent intention of the ECB to continue raising interest rates continues to create pressure on the bond market, pushing up their yields.

At the next crucial meeting of the ECB in May, major investment banks such as Goldman Sachs and Morgan Stanley estimate that the Central Bank will increase its interest rates by 0.25%. Goldman now sees a ceiling for the key ECB interest rate at 3.5% (up from 3.75% until recently), while Morgan Stanley places the “ceiling” at 3.75% until July (up from 4% that was the earliest prediction). HSBC and Barclays maintain their forecast that the key rate will reach 3.5%.

In the secondary market, in the Electronic Transaction System (HDAT) the volume of transactions was 66 million euros, of which 56 million euros related to purchase orders. The yield on the benchmark 10-year bond fell to 4.19% from 4.26% yesterday versus 2.10% for the German counterpart, bringing the spread to 2.09% from 2.06% at yesterday’s close.

In the foreign exchange market, the euro is moving higher against the dollar today as the European currency was trading at $1.0668 in the early afternoon from the level of $1.0658 that the market opened.

The indicative euro/dollar exchange rate announced by the ECB was 1.0623 dollars.