11 Jun 2015
Eurozone: ECB action to ease the squeeze – HSBC
FXStreet (Barcelona) - Steven Major, CFA, Global Head of Fixed Income Research at HSBC Bank, expects the European yields to face the impact of ECB’s QE which will ease the squeeze.
Key Quotes
“Taking their lead from the Bund, Eurozone yields rose dramatically as the ECB moved to address the imbalances behind the squeeze. Yields are now closer to ‘fair value’ so we will see the impact of the ECB's retuning of the purchase programme when Sovereign redemptions hit EUR128bn in July (net issuance -EUR45bn). In the meantime, the pressure on periphery curves has shifted to steepening; there is a clear bias for central bank purchases in short maturities.”
Key Quotes
“Taking their lead from the Bund, Eurozone yields rose dramatically as the ECB moved to address the imbalances behind the squeeze. Yields are now closer to ‘fair value’ so we will see the impact of the ECB's retuning of the purchase programme when Sovereign redemptions hit EUR128bn in July (net issuance -EUR45bn). In the meantime, the pressure on periphery curves has shifted to steepening; there is a clear bias for central bank purchases in short maturities.”