Policy
ECB minutes read dovish; the Bund holds 2.62%
Accounts of the last meeting lean dovish, but the ten-year Bund barely moves.
The accounts of the Governing Council’s last meeting landed on the dovish side of expectations, with several members flagging downside risks to growth and a softer read on services inflation.
The market reaction was muted. The ten-year Bund held its ground around 2.62%, suggesting much of the dovish tone was already in the price. Attention now turns to the next round of staff projections.