The Power of Central Banks

The Power of Central Banks

In Europe, the transformation in the sovereign debt market since Mario Draghi’s “whatever it takes” promise in July 2012 has been remarkable. Ireland, which just exited an IMF bailout program in December, can now issue 5-year debt at yields well below 5-year Treasuries.

PIMCO Secular Outlook, May 2014 -- The New Neutral