Report: The European Central Bank may consider raising interest rates in June.

SEB's Jussi Hiljanen stated in a report that a rate hike by the European Central Bank is a risk, but if the conflict in the Middle East continues, June is a more likely test point. The chief interest rate strategist expects the risk to remain biased towards further market expectations of an increase in ECB policy rates, which will drive up short-term German bond yields. He said, "However, for the rate hike in April to materialize, energy prices may need to remain at current levels, based on market inflation expectations rising further, and the consumer inflation expectations survey at the end of April showing a clear increase." SEB expects that the two-year German bond yield will rise from Thursday's closing of 2.585% to around 2.70%-2.80% in the next three months.