JPMorgan: Bond sell-off is a correction, not a reversal

Nick Gartside, the CIO of Fixed Income at JP Morgan Asset Management says the latest bond sell off is a “correction, not a reversal.” “We had a trade where the ECB was seen as being behind the market. We had a concern over deflation or very low inflation. And what we’re seeing now is positioning unwind and it’s coupled with the fact that there is a bit more economic momentum. Europe this year growth will be 1.5%, maybe 2%. And of course inflation expectations are a fair bit higher. Think of it as a correction not a wholesale reversal. There’s life in the old bond dog yet.” Gartside see’s lots of opportunity in the bond market saying there’s no reason many of the European sovereign bond yields could not halve from here (driving prices upward). (VIEW LINK)