LONDON – European Central Bank President Mario Draghi has been the bond market’s best friend, but investors aren’t expecting the same support from his successor, Christine Lagarde.
Since Draghi took the helm of the ECB eight years ago, Europe’s sovereign bonds have surged, with German debt returning 27 percent and that of Ireland almost 90 percent, Bloomberg Barclays indexes show. It has been a dream trade. Draghi cut rates two days after his tenure began and went on to live up to his famous pledge in 2012 to do “whatever it takes” to hold the euro area together. He oversaw trillions in bond buying, the introduction of negative rates and measures to support banks.
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