Villeroy says that the new package will be effective
- There will be no liquidity problems
- Fall in long-term rates will help governments fighting the virus
- We have all the necessary flexibility
European Commission president von der Leyen has even coined the term 'coronabonds' to label the latest move by the ECB. As for the central bank itself, well you have to give credit where credit is due I guess.
Their latest move this week has helped to stem the rot in the bond market and also help to compress spreads between European bonds - especially that of Italy and Greece.
And that is one of the reasons that is helping to keep the market in a calmer mood today.
