ECB rate-hike talk sends short-dated bond yields to 5-week highs

LONDON: Short-term borrowing costs in Germany, the eurozone’s benchmark issuer, jumped to five-week highs after comments from European Central Bank (ECB) policymaker Ewald Nowotny raised the prospect of an interest rate rise before the end of bond-buying stimulus in the bloc.

The eurozone’s lower-rated bond markets, also sensitive to ECB rate talk, sold off sharply. Italian 10-year bond yields hit their highest since July 2015.