, Columnist
European Bonds Aren't Scared, They Have Mario Draghi
U.S. Treasuries may be packing it in, but across the pond the ECB has the market's back.
European Central Bank President Mario Draghi Announces Interest Rate Decision
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Risk off, volatility up -- last week's U.S. bond selloff caused tremors in Europe. But it should only be a temporary shock -- the inflation monster is not knocking at Europe's door.
The separate stance of the two central banks say it all. The European Central Bank is still adding stimulus whereas the Federal Reserve is starting to take it away. On top of that, the persistent weakness of the dollar versus the euro and yen is suppressing inflation pressure in Europe and Japan, and this should also keep a lid on yields.