The ECB’s new guidance and its implications for E-Z bonds

We don’t think the changes to the ECB’s guidance announced today or the Bank’s recent strategy review materially alter the near-term outlook for government bonds in the euro-zone. However, they make us even more confident in our view that the yields of euro-zone government bonds will rise only gradually over next few years and that “peripheral” spreads will remain low.
Franziska Palmas Markets Economist
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