Blackrock’s Turner Sees Bond Opportunity From Mispriced ECB Bets

BlackRock says markets are mispricing European Central Bank rate hikes, creating an opportunity to buy shorter-dated euro-area bonds. The call implies a potentially more attractive risk-reward profile in the front end of the curve if ECB tightening expectations are overstated. The article is mostly positioning commentary rather than a new policy development.

Analysis

BlackRock says markets are mispricing European Central Bank rate hikes, creating an opportunity to buy shorter-dated euro-area bonds. The call implies a potentially more attractive risk-reward profile in the front end of the curve if ECB tightening expectations are overstated. The article is mostly positioning commentary rather than a new policy development.