Germany's two-year bond yield DE2YT=RR, sensitive to interest rate expectations, plunged 37 basis points on Monday in its biggest daily fall since 1995, as investors rapidly repriced rate-rise bets. Yields rose on Tuesday, meaning their prices fell, along with U.S. peers, but remained well below levels from before SVB's lightning collapse. The ECB will want to counter the bond rally as it represents "a big easing of financial conditions" at a time of high inflation, Zahn said.