Buying In
”As you start to see yields back up, it will start to be interesting for many clients to start to buy into it,” Jim Keenan, global head of fundamental credit at BlackRock Inc., which oversees $5.1 trillion, said in an interview on Bloomberg Television.
Contributing to the repricing that’s swept fixed-income markets is mounting evidence that central banks’ historic stimulus efforts are finally paying off.
While the ECB is still projected to extend and likely tweak its asset-purchase program at the end of this year, conviction on the plan’s longevity has waned amid signs that global inflation is accelerating.
A report Friday showed consumer prices in Germany rose this month at the fastest annual pace in two years. U.K. data Thursday showed Britain’s economy grew more than forecast in the third quarter. Earlier in the week, Bank of England Governor Mark Carney said there were limits to officials’ willingness to look past an overshoot of their inflation target, signaling a chance that stimulus, including a bond-buying program, might not be expanded.
And the U.S., the world’s largest economy, grew last quarter at the fastest pace in two years, the latest data showed Friday.
This article was provide by Bloomberg.