Bloomberg reporting that the ECB want to increase their ABS holding by 10% tomorrow
The ABS part of ECB QE has been the weak link so far but Bloomberg report that sources say they will be hitting the market tomorrow to buy up to €1.6bn.
They've reportedly offered to buy €550m of Spanish securities, and €1.1bn in Dutch mortgage bonds.
That's would add around 10% to the current €15.4bn on the books. The ABS market virtually ground to a halt over the crisis and the ECB want to get it going again, in part to help the transmission of QE. ABS basically lumps up loans on banks books into bonds to sell on to investors and thus passing on the risk.
Unsurprisingly the ECB declined to comment on the story