Germany’s 10-year yield remained close to 2.3% at the start of February, having recovered from the over month low of 1.967% hit on January 18th, as investors bet the European Central Bank will maintain its hawkish rhetoric in the near term despite signs of easing inflationary pressure. Latest data showed the Eurozone’s inflation rate slowed to 8.5% in January, below market expectations, while the core rate remained at record high levels. The ECB is seen hiking interest rates by 50 bps on Thursday, while traders will be looking for whether officials signal they are likely to hike again by 50 bps at the March meeting, or hint at a slowdown in the pace of increases. In January, ECB President Lagarde warned that the central bank would continue raising interest rates and leave them in restrictive territory for as long as necessary to bring down inflation to its 2% target. Elsewhere, the US Fed will likely continue to reduce its tightening pace in upcoming meetings.