Negative bond yields aiding QE

ECB Attentive to money market conditions and inflation outlook

Analysts from JP Morgan say that the ECB’s Qe programme is having a greater impact than expected due to the banks willingness to purchase bonds at negative yields.

“Should the ECB continue with the aggressive buying, which reached €9.8 billion euros in the first three days of QE, the total programme would amount to €70 billion monthly”

“It appears that ECB’s QE policy is having a greater impact than was experienced in other regions (Japan, UK, US), in that it is willing to buy bonds at negative yields, and psychologically for investors, there is not much difference between having very little cash that doesn’t generate much profit and holding bonds that are costing you money.”

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The Corner
The Corner has a team of on-the-ground reporters in capital cities ranging from New York to Beijing. Their stories are edited by the teams at the Spanish magazine Consejeros (for members of companies’ boards of directors) and at the stock market news site Consenso Del Mercado (market consensus). They have worked in economics and communication for over 25 years.

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