Thursday, May 13, 2010

The Debts of the Spenders: ECB Cuts Back on Bond Purchases

After last weekend's pan-European bailout more details are beginning to emerge. Faced with internal dissent over rising inflation concerns, the central committee trimmed purchases of Spanish and Italian bonds. Most of the ECB’s bond purchases seem to have been made on May 10, the first day the rescue plan was in force, and buying has diminished since then.

Further details on exactly how they plan to sterilize or keep monetary purchases from spilling over into the broader market will be released later.
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