ECB is worrying about regional economy eventually.

Short comment

Mario Draghi, the President of ECB, indicated that macroeconomic situation is worse than expected, during his speech in the European Parliament today. Even though the institution thinks that the economy is still in solid recovering momentum, he said Eurozone still needs economic stimulus. It could indicate that start of rise of the policy interest rate in the zone should be delayed from this summer to much future.

I think the rise of the yields in European government securities should accompany the rise of the policy rate. Therefore, I suggest that German Bunds and other European government securities should be in bullish momentum for longer time than expected.

In more global side, as I has insisted, we don't need to worry about the quantitative tightening from the central banks. US Federal Reserve already made solid message about dovish stance and People's Bank of China indicated that the bank could start easing policy in near future. Considering decided tax increase from Japanese Government for next year, I think that Bank of Japan couldn't start the tightening too.

I think we don't need to worry about the dramatic rise of the interest rate any more.