ECB agree to buying new bonds..

[radha08]

Tommorow market Cheong...

FRANKFURT (Reuters) - The European Central Bank agreed a new bond-buying program on Thursday to lower struggling euro zone countries' borrowing costs which would serve as a "fully effective backstop", ECB President Mario Draghi said on Thursday.
The ECB Governing Council agreed on the "modalities of outright monetary transactions", Draghi told a news conference after the Council's monthly policymaking meeting in Frankfurt.
Seeking to back up his pledge to do whatever it takes to preserve the euro, Draghi said the new bond-buying program, aimed at the secondary market, would "safeguard the monetary policy transmission in all countries in the euro zone area".
It would address bond market distortions and the "unfounded" fears of investors about the irreversibility of the euro.
The scheme, which the Bundesbank is known to have opposed, would be a "fully effective backstop to prevent potentially destructive scenarios", he said.
"We are strictly within our mandate," Draghi said.

[Allthepies]

Tommorow market Cheong...

FRANKFURT (Reuters) - The European Central Bank agreed a new bond-buying program on Thursday to lower struggling euro zone countries' borrowing costs which would serve as a "fully effective backstop", ECB President Mario Draghi said on Thursday.
The ECB Governing Council agreed on the "modalities of outright monetary transactions", Draghi told a news conference after the Council's monthly policymaking meeting in Frankfurt.
Seeking to back up his pledge to do whatever it takes to preserve the euro, Draghi said the new bond-buying program, aimed at the secondary market, would "safeguard the monetary policy transmission in all countries in the euro zone area".
It would address bond market distortions and the "unfounded" fears of investors about the irreversibility of the euro.
The scheme, which the Bundesbank is known to have opposed, would be a "fully effective backstop to prevent potentially destructive scenarios", he said.
"We are strictly within our mandate," Draghi said.

Yes

[kane]

LTRO Part Deux?

[timmy]

LTRO Part Deux?

There is a new term coined for this, OMT or Outright Monetary Transaction. Coupled with a potential QE3 a couple of weeks from now, we can expect a resurgence of sentiments.

[timmy]

There is a new term coined for this, OMT or Outright Monetary Transaction. Coupled with a potential QE3 a couple of weeks from now, we can expect a resurgence of sentiments.

Actually, the liquidity injected through the OMT will be fully sterilized, meaning that on net, there will not be additional money printed. That will tamper the effect of this on asset markets. Moreover, u need Spain, Italy etc to subject themselves to austerity conditions before the ecb buy up their short term bonds under the OMT

[ysyap]

I am very skeptical about ECB's move or even the impending QE. History has taught me to know that its impact will limited. Market chiong and good feeling returns but how sustainable is that unless individual countries take ownership of their finances. Housing wise, I think prices will still be pretty stable going forward! Any higher, our own very dampening CM will return after a break of so many months.

[DC33_2008]

This news will propel the market for a while more. What is next?

[radha08]

This news will propel the market for a while more. What is next?

qe3

[Komo]

looks good till end of year