Bond Traders Return to Fretting as ECB Seen Unfurling More QE
- Concerns over liquidity, bond scarcity seen if purchases grow
- So far bond-buying is just `part of daily routine': Banca IMI
The European Central Bank (ECB) in Frankfurt, Germany.
Photographer: Martin Leissl/BloombergThis article is for subscribers only.
As the European Central Bank considers expanding its bond-buying plan, traders’ initial misgivings are resurfacing.
The first eight months of the $1.2 trillion program were an operational success, they say. Even so, the prospect of enlarging it has renewed concern that bonds will become scarce and prices volatile, anxieties that were commonplace in January when the ECB announced the start of quantitative easing.