Welcome to European Tribune. It's gone a bit quiet around here these days, but it's still going.
The bank said Monday that it underbought Italian bonds and overbought German securities in May, relative to its economy-weighted guidelines for monthly purchase amounts known as the capital key. As a reminder, last month the spread between Italy and Germany blew out to levels that started reminding everyone of the Greek debt crisis, and this served as evidence of investor nervousness about Italy's struggles to form a government.
by generic on Thu Jun 7th, 2018 at 01:00:08 PM EST
Thou note the url. Editor wars at bloomberg?
by generic on Thu Jun 7th, 2018 at 01:18:05 PM EST
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It would be naive to think the ECB doesn't take political circumstances into account in making buying decisions. However one month of under buying Italian bonds after months of over-buying them doesn't seem outrageous. The whole QE scheme is due to end in November anyway, which will leave Italy and Greece much more exposed t "market" volatility. I suspect Draghi's contribution to EZ recovery won't be appreciated until he's gone, and not appreciated in Italy at all.

Index of Frank's Diaries
by Frank Schnittger (mail Frankschnittger at hot male dotty communists) on Thu Jun 7th, 2018 at 05:12:21 PM EST
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We'll see if QE ends or not since none of the core problems that QE papers over are solved. Also QE was what robbed the Greeks of their bargaining leverage and we would absolutely keep it if we march into a EU - Rome showdown.
by generic on Fri Jun 8th, 2018 at 04:01:24 AM EST
[ Parent ]


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