@ClausVistesen Exactly my take..unlike other central banks ECB has a single mandate of price stability so either they have to change their mandate or act aggressively.
@ClausVistesen If bond markets say that at 8.6% inflation is ignorable, then probably bond market is wrong. Continued weakening in Euro is highly likely to add to the inflation worries and ECB having single mandate of price stability should mean that ECB has to act strongly.
Central banks have goofed up more than ever in the current inflationary cycle...their projections were wrong and still they keep on relying their own projections to give forward guidance only to take a U turn on the guidance due to the next CPI print. #ECB#FederalReserve
@TheBondFreak The fed would break his own promise to satisfy the markets..based on one data which they were most likely had a hint of while committing for the next 3 months. What a goofup.
Even if there is no significant financial stress, Zoltan will make sure that it does come as market aggressively prices stress due to his research reports.
@shortendtrader There is no point of hiking and hiking by 10bps...when ECB'S turn comes either inflation would've cooled a bit or ecb would be running too late so 10 bps hike would solve nothing. IMO it'll either be a race to zero or no hikes if situation changes in next 6 months.
@EddBolingbroke@TheTerminal My goodness...that's how research succeeds. If you don't have any stop loss for a trade it might as well come back some day.
@MacroAlf@MarketInterest Isn't it ironical? with falling yield you need to catch up by buying bonds, by buying bonds you are further pushing the yields lower?