Since when is the ECB behind the bank debt? The Irish finance minister hinted on Friday that there might be haircuts on some Anglo-Irish sub debt. However, seems like it's not happening, according to the latest comments.
Ireland Leads Surge in Sovereign Default Swaps on Bailout Costs http://www.markit.com/cds/cds-page.html Credit-default swaps tied to Irish bonds jumped as much as 30.5 basis points to a record 519 after more than doubling in the past two months..
Stronger money-supply and lending data indicate the 16-nation euro zone has seen a "turning point towards credit growth," European Central Bank Executive Board member Juergen Stark told reporters in Istanbul, news reports said Tuesday. The ECB on Monday said loans to the private sector increased by 1.2% in August compared to the same month last year. M3 money supply grew at an annual rate of 1.1%, up from 0.2% in July. Stark also said the European Central Bank is in the process of phasing out non-standard liquidity measures put in place during the financial crisis. "We are in the process of phasing out the non-standard measures. This week and in the fourth-quarter 2010 a number of non-standard measures will mature and they will not be renewed," he said, according to Dow Jones Newswires.
A persistent inversion of this sort â we are told â usually reflects changing rate expectations, towards a more hawkish stance from the ECB. http://ftalphaville.ft.com/blog/201...ity-and-the-implications-for-cash-collateral/ I am waiting for persistence...
Oct. 14 (Bloomberg) -- Pacific Investment Management Co., which runs the worldâs biggest bond fund, said it sold Treasuries on expectations a second round of debt purchases by the Federal Reserve will have limited impact. âThe market is very clearly anticipating that the Fed is going to act,â Douglas Hodge, chief operating officer, said in an interview at the World Knowledge Forum in Seoul today. âThe challenge right now is the breadth of policy measures that can be taken by the U.S. is rather limited.â The Fed purchased $300 billion of Treasuries in 2009 under a policy known as quantitative easing, or QE, and traders are preparing for another round of buying theyâve dubbed QE2. Hodgeâs comments come as some investors voice concern that record-low Treasury yields will curtail demand for U.S. bonds as the Fed acts to spur economic growth.