European bond yields continued to sell off on Thursday after the European Central Bank signaled the first interest-rate hike in the current cycle was likely next month. The ECB left key rates unchanged as it announced the end of asset purchases on July 1, and plans to raise its key interest rates next month by a quarter of a percentage point, as it vowed to lower searing inflation. The bank said it also expected to hike in September . The yield on the 10-year German bund jumped 9 basis points to 1.447%, hovering at a level not seen since 2014. The yield on the Italian 10-year bond surged 25 basis points to 3.613%, hovering around levels not seen since 2018. The euro crept up 0.1% to $1.0732, while the Stoxx Europe 600 index slumped 1.4% to 434.14.

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