Bets rise on higher European rates

摘要

Just a few weeks after the European Central Bank launched its quantitative easing (QE) programme, some investors are betting that an accelerating European economy may lead to a sharp rise in longer-term interest rates over coming months. Trading desks report increased client enquiries on option strategies to hedge higher rates at 20-year and 30-year maturities. The demand is still tentative but there has been enough interest, bankers say, to suggest the ECB's planned 18-month bond-buying campaign is behind the curve on economic and inflationary expectations.