JPMorgan Warns Europe’s Bond Investors About a World Without QE

  • As survey predicts more ECB easing, JPM looks further ahead
  • It recommends cutting positions in peripheral euro-zone bonds
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While economists may be expecting the European Central Bank to extend monetary stimulus as soon as this week, JPMorgan Chase & Co. is already looking ahead to the end of quantitative easing -- and warning investors to position for a correction in bond yields.

“The circumstantial evidence is building” that ECB easing is reaching its limits, John Normand, JPMorgan’s London-based head of foreign-exchange, commodities and international rates research, said in a note Monday.