22 Dec 2014
ECB may announce bond purchase program in early 2015 – BBH
FXStreet (Barcelona) - The Brown Brothers Harriman Team notes that consensus has developed around ECB’s bond purchase program timing, with markets expecting it to begin in early 2015.
Key Quotes
“There appears to be a general consensus that the ECB will announce a sovereign bond purchase program early next year. This anticipation and the decline in oil prices have driven European bond yields to record lows. It has helped ensure that the Greece's political uncertainty stays localized. Economic data alone will not persuade the market otherwise. That said, money supply data and credit data, due December 30, will be important for assessing the next phase of the TLTROS, which require banks to increase their lending books.”
“A non-binding opinion of the European Court of Justice on the OMT program is expected on January 14. It is not seen as an obstacle.“
Key Quotes
“There appears to be a general consensus that the ECB will announce a sovereign bond purchase program early next year. This anticipation and the decline in oil prices have driven European bond yields to record lows. It has helped ensure that the Greece's political uncertainty stays localized. Economic data alone will not persuade the market otherwise. That said, money supply data and credit data, due December 30, will be important for assessing the next phase of the TLTROS, which require banks to increase their lending books.”
“A non-binding opinion of the European Court of Justice on the OMT program is expected on January 14. It is not seen as an obstacle.“