ECB's intervention was the strongest bond market in the last 7 months - Fashion - Style - Trendy

Saturday, December 4, 2010

ECB's intervention was the strongest bond market in the last 7 months

European Central Bank (ECB) President Jean-Claude Trichet in the euro after the crisis, steady and careful description of the response given, the bond market, the intervention of the last seven months was the hardest.

Taking the pulse of the global economy EKONET'te processors on the market, 100 million euro bonds ECB on Thursday, Portugal and Ireland, said that the slices. 25 million euros in the previous purchases of bonds being carried out in slices. Ireland and Portugal as well as the ECB's move while driving down the cost of borrowing, the rise of the euro has brought. Portugal 10-year term after the ECB's move buying interest by 50 basis points more than government bonds fell 5.82 percent to, at the same interest rate bonds have a maturity of 25 basis points more than in Ireland fell by 8.30 per cent come to. However, processors, large scale program of recovery caused the ECB on the grounds that Spain has a relatively large economy gerçekleştirmedi buying bonds. In some processors, the ECB, in the United States suffered a similar disappointment because of retaining the decision of the monetary expansion. Trichet, speaking at the meeting announced by ECB has not changed interest rates, due to not do descriptions of the 1.30 expected by the markets 'lu declining levels of the euro / dollar parity, the news of the purchase of bonds re-1:32' s climbed. Trichet in his speech to expand their purchases of bonds, the rate declined to a clear explanation about artıracağıyla. Instead, the public finances in the euro zone governments Trichet re-emphasized the responsibility they have to earn trust. President of the ECB, however, that European governments should be prepared in case of need to increase resource recovery Fonu'nundaki, he said. Trichet, the reaction of the markets is temporary and unlimited bond purchase program, the Bank will continue, he said. Bond purchase program, the ECB, together with Greece in the euro because of the worsening debt crisis began in May. Jullian Callow European economist at Barclays Capital, ECB to move his evaluation, "in this adaptation from the intervention as an intervention in a very tactical," he said. ECB Executive Board also provided the liquidity in the markets in 2008, Lehman Brothers after sunset, under the exit strategy to withdraw at the earliest step in the decision to postpone until April 2011 was received. * This article in the Financial Times, "the ECB steps up push to calm markets" has been compiled under the title published in the news.

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