Berlin / Frankfurt (Reuters) – The European Central Bank (ECB) will temporarily pick up the pace of their large-scale bond purchases.
Because of the holiday season usually thin in the summer sales in the market will intensify the program previously announced ECB Executive Board Member Benoit Coeure in a published speech on Tuesday in London. At issue is a moderate increase in the months of May and June. In July and August less papers would then buy accordingly. This approach is intended to ensure that the ECB could reach their average volume of € 60 billion per month. In September, the scope will run up again when needed.
“This is not a change in monetary policy,” said Commerzbank analyst Lutz Karpowitz. It is only logical in months with lower sales likely to buy less, so as not to affect the share price performance over charge. The prospect of increased bond purchases in the coming weeks, sent the euro plummeting. He sank within minutes to more than one US cent to $ 1.1197 from. The Bund future, one based on the ten-year Bund futures contract, rose in turn by up to 126 ticks at 154.77 points.
“If market analysts might see in the coming weeks, a slightly higher purchase volume, has nothing to do with the recent period of market volatility, this,” said Coeure. In recent weeks a sell-off in bonds was used. Here, the Bund future had taken place within a few days the biggest price drop in its history before stabilizing again. Coeure said normally be price corrections in the market no cause for alarm. But in this case it was the pace that prepare him worry.
The ECB buys bonds in March en masse in order to whip up their view undesirably low inflation and sluggish economy a helping hand. Currently, the monetary authorities have already purchased securities for more than 122 billion euros. By autumn 2016 more than one trillion euros is to be pumped into the financial system.
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