Global Macro Service > Research Briefings

Latent private bond demand to soften end of ECB QE

The impact of ECB tapering and balance sheet unwind will be softened by strong demand from European private investors, who will themselves unwind severe portfolio dislocations. These investors may rebuild their much-depleted portfolio of domestic securities and in so doing almost fully offset the negative impact on bond prices. Our predictions are in line with lessons from the Fed’s experience.

To read the full briefing please
If you are not a subscriber, request a free trial of our Global Macro Service by filling out the form below