Analysts at TDS point out that today is the first full day of the ECB’s Sintra conference and the key event today will be President Draghi’s introductory speech at 9am BST, which markets will be keeping an eye on after the sharp market reaction to last year’s speech, which drove the EUR and bund yields substantially higher, even starting some chatter of a potential taper tantrum.
Key Quotes
“The ECB was forced to come out with “sources” stories issuing clarifications afterwards, saying that Draghi’s comments were over-interpreted.”
“This year though we don’t think that there’s nearly as much opportunity for mis-steps after what we think was a pretty clear message at last week’s ECB meeting. Markets now have a very clear idea of the path toward the end of QE as well as the timing for the first rate hike, so with policy largely on a preset course until Q3 2019, contingent on macro developments of course, we think that any market reaction to Draghi’s comments this year is likely to be muted. The ECB’s Praet and Lane also have appearances at Sintra today.”
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