EURO GOVT-German Schatz at highest since Dec. 2008

LONDON, April 8 (Reuters) – The German two-year Schatz yield
rose to its highest in over two years on Friday as the market
bet the European Central Bank could raise interest rates again
as early as June after a historic hike on Thursday.

The Schatz yield (DE2YT=TWEB: Quote, Profile, Research) rose as high as 1.92 percent,
its highest since December 2008.

Markets are close to pricing in a further rate hike in the
ECB’s main refinancing rate — now at 1.25 percent — in June
and it is more than fully priced by July (ECBWATCH: Quote, Profile, Research), in line
with the results of a Reuters poll conducted late on Thursday
[ECB/INT].
(Reporting by Emelia Sithole-Matarise)

EURO GOVT-German Schatz at highest since Dec. 2008