Markets

Some truth to the rumours that ECB can't find bonds to buy

Bond purchases fall dramatically

At just 9.7B, ECB weekly bond purchases last week were nearly halved from 17.1B the week before and the average near 18B from the past three months.

Bloomberg reported last week that the ECB was weighing looser QE rules after the Brexit depleted eligible assets.

At the time, the ECB sort of denied the report but also sort of confirmed it.

The problem is that bond yields are below ECB thresholds. They don't want to buy negative-yielding bonds or low quality assets.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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