© Reuters. FILE PHOTO: A Euro sign is seen moments before a symphony of light consisting of bars, lines and circles in blue and yellow, the colours of the European Union, illuminates the south facade of the European Central Bank (ECB) headquarters in Frankfurt, GermA look at the day ahead in markets from Julien Ponthus.
The European Central Bank’s meeting last week turned out to be quite a policy pivot.
With euro zone inflation running above 5%, money markets had already been betting the ECB would wake up, smell the coffee and possibly signal when it might follow the U.S. Federal Reserve and the Bank of England in tightening policy.
But by opening the door to a rate hike in 2022, President Christine Lagarde unleashed a massive readjustment, with German 10-year government yields seeing their biggest jump since the March 2020 COVID-19 crash.
ECB governing council member Klaas Knot doubled downed over the weekend, saying he expected rates to start rising in the fourth…
