Revved-Up ECB QE Perplexes Traders as Volatility Strikes Back
- Investors await monthly bond-buying data to gauge ECB resolve
- Traders look for pace of 80 billion euros: JPMorgan’s Gustard
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Bond traders doubtful about the European Central Bank’s resolve to stem rising long-term borrowing costs are turning to the safety of data to reveal the true extent of the revved-up QE program.
A fresh bout of volatility gripped the region’s bond markets Friday, the day after the ECB announced it was ramping up the pace of bond-buying over the next quarter to curb rising yields that could stifle economic green shoots. But policy makers made no move to alter the overall size and duration of the 1.85 trillion-euro ($2.2 trillion) program, and most said privately they don’t plan to expand it. They also didn’t offer details on exactly how much more the bank plans to buy every week and month.