Weekly: Eurozone – Forward guidance goes beyond 12-months

by: Joost Beaumont , Georgette Boele

ECB Executive Board member Asmussen clarified that the ECB’s forward guidance goes beyond 12-months, hinting that interest rates are likely to remain low through next year. This led to a further scaling back of short-term interest rate expectations. Consequently, long-term rates also fell in the (semi) core countries. In contrast, 10-Y yields jumped in Portugal, following renewed political uncertainty.