Barclays: EGB trading in euro area requires caution

“On technical details of the PSPP programme, one aspect to watch out for would be whether the ECB revises the list of the agencies that they buy. Overall, President Draghi is likely to indicate that ECB QE has got off to a good start operationally and price action terms in the market and that it will continue on its QE path. Next week will also be a supply-heavy week in the EGB market with up to €29bn issuance due, which is about €10bn higher than the weekly average so far this year,” Barclays market watchers pointed out.