December 27th, 2013 9:35 am | by John Jansen |

In a previous post I noted the hammering of European bonds and out performance of US 10 year. I also noted that I could not locate a reason. But seek and ye shall find and I have an answer. Jens Weidman of Germany lamented low interest rates and that precipitated a the gains in the Euro and the sell off in fixed income. Here is the money quote:

“The euro strengthened broadly after ECB Governing Council member Weidmann said keeping interest rates low may endanger political reforms.

According to Germany’s Bild newspaper, Weidmann said low inflation shouldn’t be used to justify loose monetary policy. “We must take care to raise interest rates again in a timely manner should inflation pressures build,” he reportedly added.”

That is from

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