Although the ECB has left interest rates unchanged and President Christine Lagarde has tried to show that the glass is half-full, with statements that the ECB won’t “rush decisions” on a policy course, “the markets” have seen the glass as half-empty and are continuing to price a four times interest hike this year through a sell-off of bonds. Thus, German five-year bonds have moved to a positive region for the first time. Earlier this year, that occurred with ten-year bonds. Yields on “peripheral” bonds increased proportionally. The spread between German and Italian bonds has risen to 150 basis points.