Tepper: ECB Rate Cut To Kill Bond Boom

Sep 8 2014 | 8:47am ET

This year’s bond-market rally won’t survive the European Central Bank’s surprise interest-rate cut last week, according to Appaloosa Management’s David Tepper.

“It’s the beginning of the end of the bond-market rally,” Tepper told Bloomberg Television. “We are done.”

The ECB unexpectedly cut rates and announced new bond-buying measures as it seeks to stave off deflation. Inflation in the Eurozone was 0.3% last month; the ECB’s inflation target is 2%.

ECB President Mario Draghi “wants inflation in the Eurozone. He will not stop,” Tepper said.

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