As worries that the European Central Bank will soon run out of sovereign debt to buy for its quantitative-easing program persist, Europe's over-leveraged governments are declining to lend a hand.
According to a study by JPMorgan Chase & Co., net issuance of new debt this year will fall well short of the ECB's appetite, which runs at a monthly clip of 80 billion euros ($88 billion). While that's just a drop in the ocean compared with the total "eligible universe," the data illustrate the speed with which the central bank is eating up the market.
The ECB's demand for bonds this year was in fact about three times of what governments will put on the market.
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