There Are Two Ways 2016 Can Play Out for Euro Area Bonds

``that ECB is growing weary of the QE. The hope -- at the end of 2014 -- was that QE will give sovereigns a chance to reform their finances and that the economies will boom on foot of cheaper funding costs. Neither has happened and, if anything, public finances are remaining weak across the Euro area. The ECB has been getting a signal: QE ≠ support for reforms. And this is bound to weigh heavily on Frankfurt... European bonds are more sensitive to the ECB rate hikes than the global bonds are to the Fed hike, primarily because they are already trading at much lower yields. Overall, thus, there is a serious risk build up in the Euro area bond markets..''