LONDON, March 17 (Reuters) - Euro zone government bond yields jumped on Friday after a European Central Bank policymaker said the central bank will decide at a later time whether to raise interest rates before or after ending its bond purchase programme.
Austrian central bank governor Ewald Nowotny told a newspaper on Thursday that the ECB could hike its deposit rate, currently below zero, before the main rates at which it lends to banks.
Germany’s two-year government bond yield rose as high as minus 0.69 percent, its highest in around five weeks, and yields on 10-year borrowing costs across the euro area rose 3-6 basis points.
Money market futures also sold off as investors started to bet the ECB could raise interest rates sooner rather than later. Euribor money market futures were down 2-6 basis points across the 2017-2019 strip. (Reporting by Dhara Ranasinghe, editing by Nigel Stephenson)