Tightening Comes Even to Ridiculous ECB Sooner, Faster as Seven EU Countries Hit by 10%-16% Inflation, Four by over 9% | Wolf Street

And with “data dependent” she also means that the tightening schedule will keep getting sped up – as they have been doing it all year – because the inflation data keeps getting worse.

In seven of the 29 EU countries, the “harmonized” (calculated the same way for all countries) inflation rate is in the double digits topping out in Lithuania at 15.6%. In four more EU countries, including Spain, the inflation rate is above 9%. Germany’s inflation rate of 7.6% is sending shockwaves through the country.

for these hapless bondholders, the cherry on this toxic cocktail is raging inflation that is pushing the real yield of these junk bonds, based on the yields that buyers locked in when they bought the bonds, deeply into the negative.

Tightening Comes Even to Ridiculous ECB Sooner, Faster as Seven EU Countries Hit by 10%-16% Inflation, Four by over 9% | Wolf Street