By Richard Breslow, former FX trader and fund manager who writes for Bloomberg
You Don’t Need a Taper to Price for the Event
Yesterday’s article on potential ECB tapering of their quantitative easing activities was important – even if you discount or outright dismiss its likelihood. No one was prepared to fade the news on the day and the reverberations were far and wide. If you were a bond market, of any stripe, and open for business, you got sold.