Trendiest Trades in Global Bonds, Currencies Are Getting Crushed
- Chain reaction after ECB punishes bets on dollar gains
- U.S. two-year spread over bunds narrows most since September
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The most crowded trades in global debt and currency markets unraveled Thursday, and it wasn’t pretty.
After months of betting on diverging monetary policies in the U.S. and Europe, investors got whipsawed after the European Central Bank said it would keep the size of its monthly asset purchases unchanged, even though it committed to extending quantitative easing by six months.