Bazooka or water pistol, Draghi is guaranteed to disappoint
There is typically a degree of consensus among market participants as to what a central bank will say at its upcoming monetary policy meeting. But, days before the European Central Bank’s Governing Council gathering on Thursday — the most important of the year and perhaps ever — there are wide ranging views as to what its president Mario Draghi will announce at his swansong meeting. Someone will get burned.
Bonds across the eurozone have rocketed in recent months sending yields deeply negative. Almost €17tr worth of bonds carry a negative yield and around 90% of all SSA and covered bonds are yielding below 0%, according to analyst estimates.A number SSA and covered bonds have even been ...
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