ECB to raise rates?
"We had a number of us thinking that, all taken into account, that we had a case for increasing rates ... It's not excluded that after having carefully examined the situation that we could decide to move our rates for a small amount at our next meeting in order to secure the solid anchoring of inflation expectations."
In other words, the ECB is openly talking about a rate HIKE at its next meeting in July. European bond prices dropped in response, and U.S. Treasuries fell in sympathy. Long bond futures were recently down 25/32 and 10-year yields were up 4 basis points to 4.02%.