When Mario Draghi pledged to hold together the euro area, the endorsement in bond markets was immediate and enduring. Now it’s time to back him again as he vows to rekindle inflation, France’s biggest bank says.
Laurence Mutkin, the former global head of interest-rate strategy at Morgan Stanley, will join BNP Paribas SA as chief interest-rate strategist, said Ashling Cashmore, a spokeswoman for the French bank in London.
Italy’s government bonds rose, with 10-year securities extending a fourth weekly gain, as Prime- Minister-designate Matteo Renzi prepared to name his cabinet amid speculation he will accelerate economic reform.
Spanish and Italian government bonds rose for a second day as a report showed investor confidence in the region was near an 18-month high amid speculation policy makers will keep interest rates low to boost the recovery.
Capital rules for banks agreed by central bankers and regulators under the Basel III accord will encourage lenders to buy government bonds to boost ownership of “high-quality liquid securities,” Morgan Stanley said.
Portugal risks being frozen out of the bond markets next year amid a wave of auctions from higher- rated governments and agencies that threaten to force the nation into seeking a bailout to pay its debts.