Goldman Sees Euro Boost as $3.3 Trillion Bond Exodus Reverses
- ECB’s negative rates in past led to bond outflows: Goldman
- ECB’s pivot puts upside risks on Goldman’s $1.15 forecast
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The end of the era of sub-zero yields is about to add a fresh spur to the euro, according to strategists at Goldman Sachs Group Inc.
With the European Central Bank unwilling to rule out raising interest rates as soon as this year, some of the 2.9 trillion euros ($3.3 trillion) that was pulled out of the region’s bond market as yields went negative in 2014 may be about to flow back in, the bank says.