-
Bond Traders Fear ECB Hawks as Energy Jitters Return to Europe
Freezing winter weather seems a remote concern as Europe swelters, but traders and strategists got a reminder last week of the continent’s fragile energy security and bond-market risks. Spot natural gas prices leapt almost 30% in one day after strike threats in Australia jolted investors. ING Groep NV, Rabobank and Saxo Bank A/S recommend positioning for a hawkish pivot from the European Central Bank as energy prices rise again, saying officials will look to stop long-term inflation expectations from drifting ever higher. “Suddenly some inflation alarms are ringing again,” said Benjamin Schroeder, senior rates ... (full story)