bosmeld
Forumer storico
[Reuters] BUZZ-The ECB didn't do a lot, but it didn't do nothing
"The Governing Council...may undertake outright open market operations of a size adequate to reach its objectives. In this context, the concerns of private investors about seniority will be addressed," the ECB said. This statement effectively says the bank could buy large amounts of Spanish and Italian debt to stabilise government borrowing costs. It also implies that any future haircuts could be applied to the ECB's holdings of euro sovereign debt. The market is disappointed. One reason is lack of progress on a banking licence for the ESM. But it appears that some progress has been made.
"The Governing Council...may undertake outright open market operations of a size adequate to reach its objectives. In this context, the concerns of private investors about seniority will be addressed," the ECB said. This statement effectively says the bank could buy large amounts of Spanish and Italian debt to stabilise government borrowing costs. It also implies that any future haircuts could be applied to the ECB's holdings of euro sovereign debt. The market is disappointed. One reason is lack of progress on a banking licence for the ESM. But it appears that some progress has been made.