Carmignac: Comment on ECB

Carmignac: Comment on ECB

ECB
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As largely anticipated by investors, the ECB has raised rates by 25 basis points.

The statement's forward-looking elements hint at the end in sight of the hiking path with another two 25 bps on the cards. Along with the reduction of the Asset Purchase Program, which will come to an end by July.

The light at the end of the tunnel from the end of hikes should be supportive for fixed-income markets in general. While the end of reinvestments under the APP is expected to put upward pressure on yields of those sovereign issuers which have benefited the most from the program i.e. so-called peripheral countries, especially as they have been showing no sign of stress so far from Quantitative Tightening.