ECB QE: special focus

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Euromoney reports on the ECB's bid to reflate the eurozone through quantitative easing.

Mario Draghi 2_R-envelope
 


Yieldbuster

How eurozone QE is reshaping the bond markets

April 2015

If Europe’s economy remains in crisis, then someone please tell the bond markets. The ECB’s asset purchase programme has driven half of the EU’s sovereign debt pile into negative yield territory. And central bank president Mario Draghi’s plan has only just started. Funds see little choice but to follow the QE monster on its path of destruction through the yield curve. Will that lead to the surreal outcome of all EU sovereigns yielding the same, regardless of credit quality?


 ECB-bank-lending-survey-change-in-demand-for-loans

The ECB goes for broke
February 2015
The eurozone’s economic fortunes should start to recover with the arrival, at last, of full-blown quantitative easing. As the world’s leading currencies are set for a race to the bottom, it could be time to buy gold.

Failed ECB asset purchases plan has wrought 'malign impacts' for the market
January 2015
The corporate bond market fears crowding out as quantitative easing looms.

QE this year is inevitable
July 2014
ECB president Mario Draghi has resisted using his quantitative easing bazooka up to now. However, with inflation expectations already moving lower, he will have to fire it before the year is out.

Fed ECB Relative Balance Sheet Growth vs. EUR USD

Time for ECB action
June 2014
There is no time to waste for intervention to overcome persistently low inflation in the eurozone.

Europe deflates; time for QE
May 2014
The ECB view that eurozone disinflation is slowly reversing is unconvincing. QE might be the only strategy left, although it is not risk free.

ECB weighs quantitative easing as options to revive economy run dry
Insight, November 2013
With inflation continuing to fall and growth flatlining, pressure is mounting on the ECB as it edges closer to exhausting less contentious policy weapons to combat the threat of deflation.

Roche Inflation chart