JPMorgan cautions Europeans about a world without QE

London

WHILE economists may be expecting the European Central Bank (ECB) to extend monetary stimulus as soon as this week, JPMorgan Chase & Co is already looking ahead to the end of quantitative easing (QE) - and warning investors to position themselves for a correction in bond yields.

"The circumstantial evidence is building" that ECB easing is reaching its limits, John Normand, JPMorgan's London-based head of foreign exchange, commodities and international rates research, said in a note on Monday. JPMorgan says this may push debt yields up from record lows. Over the past three weeks, "we've been positioning selective in trades that benefit from a gradual rethink" in policy, Mr Normand said in a separate note last week.