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Bond Investors Waiting on Draghi as Inflation Wagers Collapse

  • ECB forecast to keep deposit rate unchanged on Jan. 21
  • Latest inflation data due two days before ECB meeting

With a plunge in global commodity prices threatening the European Central Bank’s already distant inflation goal, bond investors will be watching Mario Draghi next week for signs of a response.

Euro-area government bonds have returned 0.8 percent since Dec. 3, when the ECB delivered stimulus that was seen by some investors as inadequate. Turmoil in China has further clouded the outlook for global growth and fueled concern that the Frankfurt-based central bank’s goal for 2 percent annual-price growth is becoming unattainable.