- Since the beginning of the year, the ECB has stepped up the pace of its bond buying to around €80 billion per month over the past quarter and said it would continue to buy at an accelerated rate as conditions warrant.
- Inflation is more of an issue in the United States than in Europe.
- Upcoming elections in Europe: German election in September and French election in the next year.
- The United Kingdom is bouncing back even more quickly from COVID-19 than mainland Europe. There are lingering trade issues tied to Brexit.
- Given rising growth and inflation trends globally, it would be hard to justify continued central bank accommodation at such high levels.
For further details see:
European Fixed Income Finds Central Bank Support