Bond investors are preparing for another wave of quantitative easing from the European Central Bank by returning to some of their favorite post-crisis trades.
Policy makers anticipate an interest-rate cut could be their first move and President Mario Draghi said the institution could also resume bond buying. Fund managers are getting ahead of any stimulus by snapping up the debt of nations such as France and Italy that have greater scope for purchases by the ECB, and betting on a drop in longer-maturity yields relative to near-term rates.
