Dec 18 (Reuters) - Euro zone government bond yields
edged up and traders increased their bets on future European
Central Bank rate hikes, following the ECB's widely anticipated
decision to keep rates unchanged.
The ECB took a more positive view on the euro area economy that
has shown resilience to global trade shocks.
Germany's 10-year yields, the euro area's
benchmark, were up 1.5 basis points (bps) at 2.88%. They hit
2.894% last week, their highest level since mid-March.
Money markets priced in an around 20% probability to a
tightening move by December 2026 and a 45%
chance by March 2027, respectively from
12% and 35% before the statement.
Traders assigned over 50% probability of a tightening move
in March 2027 last week. The ECB depo rate is currently at 2%.