Economics
Lautenschlaeger’s Exit Removes QE Opponent for Bond Investors
- HR dynamics at the ECB are positive for bonds: Commerzbank
- Resignation is a ‘political act,’ says Mizuho’s Chatwell
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Sabine Lautenschlaeger’s resignation from the board of the European Central Bank removes a hawkish policy maker for bond traders, after her opposition to more quantitative easing.
While market reaction Thursday to the surprise announcement was limited, investors are likely to see her exit as helping to clear the way for more policy easing measures in the future, according to strategists. That would provide support for the record-breaking rally in the region’s bonds this year.