Negative bond yields aiding QE
The Corner | March 18, 2015 | What does negative bond yields mean psychologically for investors?
ECB
Has the Spanish Treasury hit upon the right strategy with longer maturities?
MADRID | By Francisco López | March 16, 2015 | Some opportunities are not to be missed. The Spanish Treasury’s first auction since the ECB launched its sovereign bond-buying program saw yields fall to their lowest levels in history.
Yield gap growing –For how long?
The Corner | March 11, 2015 | The euro sinked to 12-year lows on Wednesday due to the ECB’s money printing –which is pushing yields down (German 30-year government bonds are now lower than those on U.S. two-year paper), and increasing expectations of a rates hike on the other side of the Atlantic. ECB’s Governing Council member Ewald Nowotny insisted that negative bond yields in the euro area probably won’t remain for long.
QE effects: “Bond prices will go up, then money will fly towards equities”
The Corner | March 9, 2015 | Peripheral bonds hit minimum lows on Monday as the ECB and the 19 national central banks started the much-awaited sovereign puchases on Monday. Short-term eurozone interest rates are expected to move deeper into negative territory as the QE unfolds. “This programme will mean a safety net for the eurozone equities and bond markets. However, we might see some corrections,” experts at Link Securities commented. Liquidity injected in the system “will first push bond prices up, but almost simultaneously will move towards equities,” Bankinter analysts noted.
ECB optimism a good omen for traders
The Corner | March 6, 2015 | Markets are likely to be buoyed by the positive assessment of Mario Draghi yesterday, which will probably be backed up by euro zone growth figures for Q4, released later this morning. In other news, Spanish 10-year bonds are up for auction too, while Spain’s industrial sector is expected to return to positive territory
Memento: How QE will work
The Corner | March 5, 2015 | Whatever it takes, don’t miss the mechanics of the European Central Bank’s next purchase programme starting on Monday.
ECB to detail QE plans
The Corner | March 5, 2015 | Markets are again looking to the ECB for a gauge as to where the continent is headed, with Mario Draghi expected to announce more detailed descriptions of the bank’s QE plan. Elsewhere, data from Germany, Italy and Greece are likely to highlight the divergent fortunes of countries within the single currency area.
Euro area retail sales expected to rise
The Corner | March 4, 2015 | Data released today are expected to confirm that retail sales are on the rise in the euro area. Forecasters are predicting a rise of between 1.5 and 2.0% for the year to January. However, markets are eagerly awating further indications on the finer details of the European Central Bank’s quantitative easing programme, which will be announced in Nicosia on Thursday. Markit composite figures are due today, but traders are more likely to be mindful of tomorrow’s scheduled announcement.
“The ECB won the debt crisis war, but now it could lose the battle against inflation”
WASHINGTON | March 2, 2015 | By Pablo Pardo | Neil Irwin believes central bankers are the real heroes of the economic crisis that continues to bog down the eurozone. In his book ‘The alchemists’, the New York Times senior correspondent paints Ben Bernanke as a hero and ECB’s Jean-Claude Trichet, as one of the greatest villains.
ECB action beginning to pay off
MADRID | February 27, 2015 | J.J Fernandez-Figares| Link Securities | Efforts by the ECB to inject money into the euro zone are already showing signs of impact as positive M3 figures offer encouragement ahead of March purchases of sovereign bonds.