Markets Might be Pricing ECB Rate Path Excessively
Dow Jones
3 hours ago
1559 GMT - Markets might already be going too far, making eurozone bond market valuations increasingly attractive, Candriam CIO Nicolas Forest says after the European Central Bank's 25-basis-point rate hike. "Bond investors are pricing around 50 basis points of additional tightening, which would take the deposit rate to 3.0% by March," he says. Candriam thinks that looks stretched. Unless the inflation outlook deteriorates further or Europe faces another major energy shock, the bar for tightening beyond what is already priced remains high, he says. "This makes bond markets valuations increasingly attractive."
At the request of the copyright holder, you need to log in to view this content
Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.