Bonds cautious ahead of ECB meeting
Mihir Kapadia, CEO and Founder, Sun Global Investments
Bond Markets are also likely to be cautious ahead of the ECB meeting on Thursday where it is expected to reduce monthly bond purchases from Euro 60bn a month to Euro 25bn to 30bn for the first nine months of 2018 which is the period that the current programme of bond buying has left. ECB has indicated the interest rates will be left unchanged for some time. Although the reduction in bond buying has been well flagged, the “announcement effect” may still cause some decline in European bond prices.