ECB spokesperson stated that the market is underestimating the possibility of a rate hike in Septemberš®
A quiet Asia session was punctuated by a number of hawkish ECB statements (Knot: āmarket underestimating September hikeā and Kazimir āSep hike prefereableā), pushing 2yr German Schatz yields 7bp higher on the day, overwhelming an otherwise very weak German factory orders at -11.7% MoM. ECB hiking odds are at 33% for next week, with the market 50/50 on whether we will get 1 more final hike in Europe or not.
