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ECB buys €1.704B of covered bonds in first week - Deutsche Bank

FXStreet (Łódź) - Jim Reid, Head of Global Fundamental Credit Strategy at Deutsche Bank, notes that the ECB purchased €1.704B of Covered bonds last week, broadly in line with projections.

Key quotes

"The result was broadly in line with what was expected but it’s a long way to go to reach a Trillion Euros."

"We still think they'll have to do Government QE to get there, a view shared by our Economists."
"They simply don't think there's enough private securities to be able to realistically buy enough bonds to meet their target."

"My team contributed to a section in this week's Focus Europe where the conclusion is that buying corporate bonds is a decent possibility but that they will still eventually need to do full QE to get the desired volumes."

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