Beyond low... A new frontier for fixed income

Nick Gartside, CIO, global fixed income group, J.P. Morgan Asset Management, discusses the possible impact of the ECB's recent policy action to boost the health of the eurozone.

The impact of the ECB’s recent eyecatching moves to improve the eurozone economy is still trickling through global bond markets, and longer-term implications remain much debated. At face value, though, market expectations were elevated, and the ECB delivered and then some. Markets had a checklist: cuts to both the deposit and refinancing rates, targeted Long Term Refinancing Operations, and adding more liquidity by unsterilising the Securities Market Programme. All were delivered, together with a pledge to keep rates low for longer, as well as a commitment to consider buying asset-bac...