ECB Stimulus Means No Angst Over Slovak Post-Vote Impasse: Chart

Source: Bloomberg

Post-election deadlocks that can lead to early elections tend to be bad news for investors, unless the European Central Bank is on a buying spree. Slovakia’s borrowing costs fell Monday, mirroring Germany, even as an inconclusive weekend vote threatened to result in a hung parliament. So strong is the buffer effect of the ECB’s bond-purchasing program that it has driven up demand for Slovak debt and sent bond yields to the third lowest level in the euro area, below higher-rated Finland and Austria.

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