He says that the timing of euro area QE couldn’t be worse, because it coincides with the US trying to normalise the economy after its own extensive QE programme, and because China is no longer securitizing its surplus. Jakobsen expects any bond rally on the back of the ECB's intervention may be short-lived.

In addition, the market has grown complacent about the impact of QE and may be expecting the ECB will continue to intervene to stabilise the market. Front-loading the QE programme could force the ECB down an “irreversible path” with no results to show for it, says Jakobsen.

What is really concerning is that the ECB’s QE programme, aimed at reviving the euro area economy, has failed to enter into the real economy despite the ECB hailing its bond buying efforts as a success only a few weeks ago, Jakobsen says.