Germany's 10-year government yield, the benchmark for the bloc, rose three basis points to 0.60 pct in the aftermath of the news.

"For me, the bond market move is driven by the ECB language so there is a significant move in rates," said Rabobank rates strategist Lyn Graham-Taylor. "It's led to a bit of a firmer pricing for a Q2 (2019) rate hike than some people had expected."

The euro rebounded from the day's lows and rose quarter of a percent to $1.2321. It rose by a similar margin against the franc.