Draghi leaves, but ultra-low bond yields are probably here to stay

Mario Draghi’s swansong at today’s ECB meeting caused few ripples in the markets. Nonetheless, we think that the recent decisions taken under his leadership to cut rates and relaunch QE set the stage for even more easing in 2020, given the gloomy outlook for the economy in the euro-zone. Bearing this – and the limited appetite for fiscal expansion – in mind, we suspect that government bond yields there will stay very low next year.