Investors Rush to Buy Europe’s Bonds After ECB Drops QE Limits
- Yields tumble after end of buying restrictions at central bank
- ECB program now fully flexible with no restrictions: Danske
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Euro-area sovereign bonds surged after the European Central Bank gave itself unlimited room to buy the debt.
Yields tumbled from Germany to Italy, while Greece was the outright winner, after the central bank scrapped issuer-wise limits on debt purchases under its new 750 billion-euro ($821 billion) emergency program aimed at combating the coronavirus impact. The move removes a major hurdle to the institution’s ability to load up on euro-area debt. Yields slumped further after the number of Americans filing for unemployment benefits jumped to a record 3.28 million last week.