Record Bond Rally Hinges on Draghi Delivering a Full QE Package
- Bond gains have faltered on doubts over scope of asset buying
- Markets see 15-basis-point rate cut, more than economists
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Mario Draghi needs to go out with a bang if he’s to renew a surge in bond prices that sent yields to unprecedented lows.
Markets have factored in the European Central Bank’s president slashing interest rates and restarting quantitative easing, so it will take a multi-faceted stimulus package in his penultimate meeting Thursday to impress investors. Bond gains have faltered and the euro has staged a recovery from the weakest since 2017 this month after opposition from some officials raised doubts over the size and timing of any new asset purchases.