Tag Archives: ECB

ECB easing – will it work? No. 3: Carry trades and ‘hot potato’ effect

There are no penalties attached to the TLTRO borrowing that prevent banks from using the funding for

rowing hopes the ECB will to do more pressured yields to new lows once more in Euro area.

We expect the TLTROs will boost liquidity. However, the amount of borrowing limits is unknown as it

Risk sentiment got hit on Friday by news that a Russian aid convoy had crossed Ukrainian border without permission from Kiev.

ECB’s easing measures revisited

Draghi “Put” in place Developments this week have only strengthened our opinion that in themedium-term EUR will continue to depreciate.

German Bund yields stayed one more day at a touch below 1% clearly ignorant of anything that goes on in the other markets.

German 10-year Bund yield was again pressured below 1% with the hopes of more ECB easing keeping the rates down.

German 10-year yield reached for levels below 1% again. Eonia slipped to new all-time lows and negative fixings are getting closer.

Rates rebound, bund yield above 1% again, and stocks rebound. 5Y5Y inflation swap has dropped below 2% – Anchor drifting?

10-year Bund closed at 0.95 % on Friday. Geopolitics still high on the agenda.

Eurozone growth at a standstill: Average equals zero. 10Y bund yield was (briefly) below 1%.