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6 Jan 2015
ECB expected to drive a continuation of the convergence of European yields – FXStreet
FXStreet (Barcelona) - FXStreet Analyst, Craig Drake, expects ECB’s sovereign asset purchase program to continue the trend of convergence in European yields.
Key Quotes
“The chart of European sovereign debt shows a trend of converging and declining yields through 2013 to date (though Greece gets a different axis since yields disconnected in September as the threat of a Greek default and exit from the euro again raised its head).”
“We expect to see more of the same trend in 2015 in anticipation of a price insensitive buyer of sovereign debt entering the market in the form of a European Central Bank QE sovereign asset purchase programme.”
Key Quotes
“The chart of European sovereign debt shows a trend of converging and declining yields through 2013 to date (though Greece gets a different axis since yields disconnected in September as the threat of a Greek default and exit from the euro again raised its head).”
“We expect to see more of the same trend in 2015 in anticipation of a price insensitive buyer of sovereign debt entering the market in the form of a European Central Bank QE sovereign asset purchase programme.”