Yield gap growing –For how long?

Yields are growing–for how long?

If we enter a more normal phase of inflation expectations, that will also be reflected in yields,” the Austrian central-bank governor said in an interview in Frankfurt on Wednesday.

“I don’t think one can assume that we will have a very long phase of negative yields if this program is successful,” he said.

Analysts expect corrections to happen soon, as inflation hopes go up thanks to the ECB’s QE.

“The euro is likely to go back to 1.20-1.30, even if this looks too far right now,” experts at Bankinter commented.

 

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