4min chapter

Market Depth cover image

The Most Important ECB Meeting Since The Draghi Era

Market Depth

CHAPTER

The European Central Bank Wants to See Bond Markets Pricing in Nominal Rates at 4% or Higher

Lagarde wants to see bond markets pricing in much higher nominal interest rates. She's going to end up inverting yield curves more and more and more, she says. The European central bank cannot also try and rescue Italy at the same time as trying to bring down inflation. There will be casualties: housing market, Italy, there will be other risk factors in Europe that will pop up to the surface.

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