Investors Flag Risk of ECB Disappointing After Europe Bond Rally
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Firms from Pioneer Investment Management Ltd. to AllianceBernstein Holding LP say the odds are high that measures the European Central Bank will announce to stimulate the region’s economy will fall short of the bond market’s lofty expectations.
Yields on bonds from Belgium, France, Italy and Spain have fallen to records in the past month amid speculation policy makers meeting tomorrow may add unconventional measures, such as quantitative easing, in addition to lowering interest rates. The euro has fallen about 2.7 percent from a more than two-and-a-half year high of $1.3993 on May 8 before ECB President Mario Draghi said the central bank was “comfortable” taking measures to boost inflation.