ECB interest rate cut lifts demand for global bonds

Professional Adviser
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Signals from the European Central Bank (ECB) that monetary policy remains on an easing bias have boo...

Signals from the European Central Bank (ECB) that monetary policy remains on an easing bias have boosted sentiment in the global bond market. Earlier this month, the ECB cut its key interest rate from 2.5% to 2% in a move widely expected by the markets. However, statements from ECB policymakers were the real focus of market attention. 'We weren't surprised by the cut itself, which was very much needed and quite expected,' says Steve Skinner, associate director of fixed interest at Hendersons. 'It was quite well received by the market, mainly because ECB president Wim Duisenberg...

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