Bonds Fall on ECB Tapering Report

The transcript discusses a Bloomberg report suggesting that ECB policymakers are considering ending quantitative easing. This news caused a significant market reaction, reminiscent of the 2013 taper tantrum. The discussion highlights the potential implications of ECB's tapering, the central banks' reliance on monetary stimulus, and recent policy changes by the Bank of Japan. It also explores the challenges ECB faces in implementing specific yield targets due to varying spreads among European countries.

What are the potential consequences of a 'taper tantrum' in the market?

What challenges does the ECB face in maintaining a specific yield?