Market comment | Draghi’s reinforced dovish tone pushed bund yields to new lows

Summary

Stocks rallied globally while bond yields declined drastically driven by unexpectedly dovish comments from ECB officials supporting market’s expectations for easier monetary policies from both the ECB and the Fed and slight relief on US-China trade frictions.

Key points

• Key points:
• ECB will ease its monetary policy if inflation fails to accelerate
• The U.S. President Trump will meet with China’s leader at G20
• Search for yield boost peripheral bond demand

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