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ECB Firepower Waning as Out-of-Reach Bonds Approach $1 Trillion

Bonds with yields below -0.2% deposit rate total $924 billion
German 10-year government securities decline for fourth day

By

Anchalee Worrachate

November 5, 2015, 11:06 AM UTCUpdated onNovember 5, 2015, 4:34 PM UTC

The European Central Bank is finding that the pool of bonds it can purchase under its quantitative-easing program is shrinking.

Under current rules, the Frankfurt-based bank can only buy bonds yielding more than its minus 0.2 percent deposit rate. A recent rally in euro-zone debt markets has pushed the total value of ineligible securities to $924 billion, from $750 billion on Oct. 22 when the ECB last had a policy meeting.