LONDON, July 11 (Reuters) - The euro and Germany’s 10-year bond yield rose to the day’s highs on Wednesday after a report that European Central Bank policymakers were split over when the ECB might raise rates next year.
Sources told Reuters that some policymakers said an increase was possible as early as July 2019, while others ruled out a move until autumn next year.
German 10-year bond yields rose to a session high at 0.315 percent after the report and was just marginally lower on the day, having traded 2.5 bps lower for much of the session.
The euro rose to $1.1754, having traded at $1.1702 before the report. The single currency also strengthened against the pound rising to a day’s high of 88.60 pence.
The ECB said last month it expected to keep rates at their current, record-low levels “through the summer” of 2019, wording vague enough to leave the exact meaning open to debate.
“There is a clear sensitivity to the first move in the depo rate,” said Rabobank rates strategist Matt Cairns.
“Markets have started to analyse what “through summer” means, so soon as you see a headline that suggests it could be June or July versus a later move, the market latches on to the notion that a hike come sooner rather than later.” (Reporting by Dhara Ranasinghe and Tom Finn; editing by Sujata Rao)