Europe - ECB's move to neutral stance boosts bonds

Signs of recession around Europe have boosted bond markets as the European Central Bank moves to a neutral policy stance in place of its recent inflation-battling tightening bias. Michael Krautzberger, manager of BlackRock's BGF Euro Bond and BGF Euro Short Duration Bond funds, points out that ECB president Jean-Claude-Trichet admitted at its August press conference that the central bank had been partly surprised by the 'very, very weak' economic data from the euro area, which recorded negative economic growth in July largely owing to a 0.5% contraction in its largest economy, Germany. ...