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Bond Investors Dust Off Crisis Playbook as Draghi Spurs QE Bets

  • Draghi’s latest easing hints add to rush to jump on QE plays
  • Funds taking positions in peripheral debt, curve flatteners
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Draghi: Further Interest-Rate Cuts Remain Part of ECB's Tools
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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.