The end of ECB interest rate hikes bodes well for the long term
The end of ECB interest rate hikes bodes well for the long term
06:23 GMT – The end of monetary policy tightening cycles is normally positive for bonds and Columbia Threadneedle Investments aims to benefit, fixed income fund manager Alexander Batten says in a note. “As such, our funds are positioned for a long duration, consistent with our view that policy rates are likely at a peak, albeit modest in size given the uncertainties surrounding what has been a unique economic cycle,” he said. Columbia Threadneedle is more confident that the yield curve is likely to continue to steepen, either due to the weight of government bond supply or the start of a policy easing cycle at some point in the year next time, he said. (emese.bartha@wsj.com)
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