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3 Mar 2015
ECB QE to cap upside potential for EMU bond in the long-term – KBC
FXStreet (Barcelona) - The KBC Bank Research Team gives the outlook for Bunds, noting that it might range-trade this week, but longer-term upside potential might remain capped due to ECB’s QE.
Key Quotes
“Ahead of the ECB meeting/ECB QE purchases and US payrolls, we expect more range trading. For the Bund, the current range is between 157.97 and 159.54/160, but investors are gradually switching from the March contract to the June contract (155.80 – 157.27/157.77).”
“The technical picture nevertheless remains bullish.”
“Longer term, the ECB’s QE programme is expected to cap upward potential from EMU bond yields.”
Key Quotes
“Ahead of the ECB meeting/ECB QE purchases and US payrolls, we expect more range trading. For the Bund, the current range is between 157.97 and 159.54/160, but investors are gradually switching from the March contract to the June contract (155.80 – 157.27/157.77).”
“The technical picture nevertheless remains bullish.”
“Longer term, the ECB’s QE programme is expected to cap upward potential from EMU bond yields.”