No End in Sight for Bond Rally as ECB Spigot Spills Across Globe
European Central Bank President Mario Draghi arrives to deliver introductory remarks in front of the Economic and Monetary Affairs Committee at the European Parliament, in Brussels, on March 23, 2015.
Photographer: Emmanuel Dunand/AFP via Getty ImagesThis article is for subscribers only.
Eventually, analysts who keep forecasting an end to the bond market’s bull run will be correct. For now, they’re still wrong.
Just when it seemed bond yields that averaged 1.6 percent at year-end couldn’t get any lower, Mario Draghi and the European Central Bank flooded the market with cheap cash. That pushed yields in Bank of America Merrill Lynch’s Global Broad Market Index to 1.39 percent on Monday, within 0.06 percentage point of the record low reached in January.