Colin Williams, Senior analyst at International Investment firm, EXANTE, says that the ECB is rolling out a €750 billion bond buying program called Pandemic Emergency Purchase Program.
Q4 2019 hedge fund letters, conferences and more
ECB's Pandemic Emergency Purchase Program
One program after another is being rolled out to save the system. Curves have started to steepen. The US 2s were up 6 bps to 52 and the 30s rose 24 bps to 1.875. 10s gained 23.4 bps to 1.25. A long way from the spike lows. "The ECB has ridden to the rescue with a €750 billion bond buying program called Pandemic Emergency Purchase Program. We needed a new name.
It will include Greek debt. BTPs are up 800 ticks. Only yesterday I noted that Holzmann had said 'The ECB has reached its limits'. Merkel has said they will do whatever it takes and likened the C-19 crisis to the challenges Germany faced during WWII...no comment!
Run Away Inflation
The problem with unlimited money printing has always been run away inflation but what else can they do? If people are promised loan holidays, no evictions, no redundancy, helicopter money then why bother. It's desperately difficult for policy makers to know how to handle this.
Stocks had another torrid day. The Dow finished down 6.3 per cent but off its lows. Italy had its highest death count yesterday, in a single day but overnight China reported no new cases. The dollar exploded higher as the world ran to the greenback. Talk of a $12 trillion margin call across the world. New lows in Rupee Won Aussie etc. Cable sank to 1.15. Crude oil was crushed CLKO went to 20.52! it's up $3 this morning.