So far Bonds & Gold don't mind the Bloomberg ECB leak too
much. Expectations are very high, which sets the conditions for
disappointment. Not that it has to happen, but keeping it in
mind.
looks like Draghi will propose 1.1 TRILLION euros (1.3 Trillion
US). buying 50 billion euros per month for balance of year 2015 AND
2016 from 3/1/15. this is above minimum expections of 500 billion
euros and desired level of 1 trillion euros. this will expand the
ECB's balance sheet by 50% in that time period, higher than highest
levels of several years ago. that's all proposal, but what passes
is possibly another story, let alone what will be bought and buy
whom (sovereign debt vs corporate debt) and (individual country
central bank or ECB). makes for good drama. bottom line, more fuel
to the fire. with negative bond yields, portfolio managers who need
positive yields of AA rated paper or better will buy US. leaves
lots of cash left over for stocks too. good trading.
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So far Bonds & Gold
Posted by a_l_ on 21st of Jan 2015 at 11:04 am
So far Bonds & Gold don't mind the Bloomberg ECB leak too much. Expectations are very high, which sets the conditions for disappointment. Not that it has to happen, but keeping it in mind.
Well stated Alex
Posted by steve on 21st of Jan 2015 at 11:08 am
Well stated Alex
ECB my understanding
Posted by hazbin1 on 21st of Jan 2015 at 11:20 am
looks like Draghi will propose 1.1 TRILLION euros (1.3 Trillion US). buying 50 billion euros per month for balance of year 2015 AND 2016 from 3/1/15. this is above minimum expections of 500 billion euros and desired level of 1 trillion euros. this will expand the ECB's balance sheet by 50% in that time period, higher than highest levels of several years ago. that's all proposal, but what passes is possibly another story, let alone what will be bought and buy whom (sovereign debt vs corporate debt) and (individual country central bank or ECB). makes for good drama. bottom line, more fuel to the fire. with negative bond yields, portfolio managers who need positive yields of AA rated paper or better will buy US. leaves lots of cash left over for stocks too. good trading.