Bill Gross says the current situation hints at the end of the era of negative interest rates in Europe. And, it seems, the global bond market agreed with the expert - based on AMarkets.
Sovereign debt in the US and Europe fell after the ECB lowered the rate and expanded the QE program. At the same rate in the EU is already at the minimum. However, the space for larger volumes QE still remains. In anticipation of increasing the volume of monetary stimulus rates on US and German sovereign bonds rose to a maximum value over the past 30 days. Gross believes that the recent actions of the ECB and the intentions are of a fiscal nature rather than monetary.
The expert believes that the EU rate will no longer decline. Rates on 10-year US Treasuries rose on the interval 6 of 8 days (as of 11 March). Last month rally sent the rate on 10-year notes to lows in 2012 against the backdrop of increased volatility in the segment of shares and raw materials. Traders selling swaps overnight, warn about the 72% probability that the Fed will raise rates until December 2016. Last month, the probability decreased by 17%. According to current projections, after the next rate increase of its value will be 0.625% - Bloomberg surveys.