Tuesday, May 18, 2010

FT: ECB reveals €16.5bn bond purchases

FT.com is reporting (Hat Tip nakedcapitalism.com) that the ECB has purchased E16.5B of Government bonds. (Cue the Prospector: They're printin' money! They're debasin' the currency!)

Excerpt from the FT.com:

The European Central Bank has bought €16.5bn of eurozone government bonds as part of international rescue plan, amid widespread investor concern that the intervention is not yet big enough to stabilise debt markets.....The scale of the ECB’s intervention was at the low end of analysts’ expectations. But the move has broken new ground for the guardian of the euro currency, which had previously resisted buying government bonds outright.
I could not verify this at the ECB website, they have no press release and do not include this transaction in their open market operations results. They must have somehow leaked this to the FT.com.

UPDATE: Reader BFG has pointed out that the ECB has since posted an OMO to absorb the E16.5B of liquidity provided by the bond purchases. The ECB states that the bond purchases occurred last Friday, May 14th.

PS: Where was the "disaster" that occured between the 14th when they bought the bonds, and the 19th when they took away the liquidity?


BFG said...

Mike, try this link
Reference 20100037


googleheim said...

can anyone with entertainment value and academic comic relief recommend more ETF's to short the Euro and Long the Yen and dollar ?

Evidently they want the price of oil to drop like a fly and get american tourists back at the eiffel tower purchasing $10 hotdogs stuffed in bagguettes in the plaza underneath

Matt Franko said...

Thanks, it wasnt there all day yesterday and as of the time of my post. I will update the post.