1109 GMT - Yield premium reflecting market expectations of a European Central Bank rate hike later this year is expected to be embedded in the front end of the bond curve, MFS Investment Management's Peter Goves says in a note. "However, we doubt the July ECB will be overly hawkish such that it gears up the front end further," the head of developed-market sovereign debt research says in a note. "Net net, we still see value in the front-end on the assumption there is one more hike left," he says. MFS IM expects the ECB to keep rates on hold this week and the debate has likely shifted to September, he says. However, the ECB is unlikely to precommit to a September move, Goves says. (emese.bartha@wsj.com)

(END) Dow Jones Newswires

July 20, 2026 07:09 ET (11:09 GMT)

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