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Bunds Slide Most Since 2015 as Draghi Sees `Reflationary Forces'

  • French yields rise most in nearly eight months after speech
  • ECB is likely to announce tapering in September, Nomura says
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Euro Bulls, Bond Bears React to Draghi Comments

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Mario Draghi just handed German bonds the worst day in nearly two years.

Yields surged in the region’s core and peripheral economies after the European Central Bank President said that deflationary forces had been replaced by reflationary ones. While the central bank is committed to bond purchases through December, investors took his remarks to mean that the ECB may announce a tapering of its package of stimulus measures as early as autumn.