Sep
27

Bond Investors Looking to Euro-Area Inflation to Kindle More QE

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  • Dutch, Irish two-year yields dropped to record lows this week
  • Consumer-price growth stalled in September, economists predict

After markets whipsawed this week on central-bank comments, euro-area government-bond investors will look to economic data for clues on whether the European Central Bank will expand its asset-purchase program and possibly bring more support to the region’s sovereign debt.

Yields on the two-year notes of Ireland and the Netherlands touched record lows as some of Europe’s biggest money managers said the ECB will do more to support an economy that saw manufacturing and services expansion slow in September. That speculation could be fueled further by data on Sept. 30 that, according to a Bloomberg survey of economists, will show consumer-price growth stalled this month…

Bond Investors Looking to Euro-Area Inflation to Kindle More QE

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