The ZEW indicator is at levels which previously have marked a high, and discussion will now start on whether the ECB will hike rates earlier than in March. This will put the front-end under pressure.
More Quotes from Kornelius Purps:
In all likelihood, disappointing data will at some point in time dampen rate hike expectations. There's a reasonably good chance for yields to move substantially lower over the course of this year.Kornelius Purps
The ECB has signaled that if there was any risk inflation expectations would run away, they would contain them. With this central bank rate-hike cycle, it may lead to a flat yield curve by April.
Kornelius Purps
Yesterday's ECB press conference November 3, 2005 was great entertainment. Having not heard of Goethe very often in trading rooms as happened yesterday, here's my personal favorite from German philosopher Friedrich Nietzsche that sometimes describes life as a research analyststrategist Das habe ich getan, sagt mein Gedchtnis. Das kann ich nicht getan haben -- sagt mein Stolz und bleibt unerbittlich. Endlich -- gibt das Gedchtnis nach.
Kornelius Purps
Asset liability matching demand from pension funds will support the longer end and assuming the ECB hikes rates aggressively, we might see a flat yield curve by April.
Kornelius Purps
With Italy's history of more than 50 different governments since World War II, it's hard to believe that a government with such a tight majority will have the mandate to implement the structural reforms demanded by the rating agencies.
Kornelius Purps
We could get a mini rally for bonds from a weaker number because it goes against the big expectations for higher rates and stronger growth.
Kornelius Purps
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I believe all Americans who believe in freedom, tolerance and human rights have a responsibility to oppose bigotry and prejudice based on sexual orientation.
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