German government bond markets are opening lower Thursday on profit-taking ahead of the ECB policy decision and ahead of heavy slew of supply from France & Spain for up to E10.0bln. The main event of the day may be the ECB decision at 1145GMT, which will be followed as usual by the 1230GMT press conference, led by ECB President Mario Draghi, this time taking place in Barcelona. An MNI ECB sources story Wednesday observed that “a number of senior eurozone central bankers are increasingly worried about the region’s souring economic outlook, but there is not consensus for additional easing measures, in part because of the concerns of more hawkish members.” Still, the ECB is in “wait-and-see” mode as to whether additional accommodation will be necessary, the story said. One official told MNI that the ECB is “willing to do its part,” and even “go ahead with another LTRO if needed. “But under no circumstances should the governments feel that the ECB will step in and get them off the hook of their fiscal efforts,” he said. Also eyed is UK 2034 linker gilt auction for Stg1.2bln.
EasyForexNews Research Team