Institution: The market may be overreacting to expectations of a European Central Bank rate hike

They stated that these strategists remain bearish on German government bonds and prefer to sell on rallies rather than buy on dips. They said: "The energy crisis is dampening growth prospects in the eurozone, thus anchoring the level reflecting medium-term European Central Bank rate expectations around 2.50% and maintaining value in the middle segment of the euro yield curve." According to data from London Stock Exchange Group, current money markets reflect expectations of an approximately 63 basis points rate hike by the European Central Bank this year, with a 25 basis points hike at the June 11 meeting fully priced in.