ECB Policy Shift

ECB Governing Council member Christodoulos Patsalides warned that 'inflation risks are worsening,' pointing directly to a June rate increase. The move would join a synchronized global tightening cycle: US 10-year Treasury yields sit at 4.5%, 30-year yields have crossed 5%, and G7 finance ministers have convened over a global debt selloff. EU corporations face higher borrowing costs and compressed equity valuations as the post-pandemic era of cheap money closes.