Latest weekly QE numbers from the ECB
- Covered bonds total 80.759bn vs 77.970bn prior
- ABS 6.13bn vs 5.83bn prior
There's chatter in the market today that the ECB may find it difficult to find liquidity over the summer months. That task has been eased somewhat by the recent jump in yields which has brought back more of the short end paper back above the deposit rate cut off. Liquidity has greatly reduced generally, as a bund trader friend of mine has noted. Smaller trades (20 lots) are now moving the market whereas it would take more like 100 lots to move the market the same amount
The euro has sunk further on the news that the ECB continue to load up with QE. We're at 1.1343 from a 1.1340 low, and down 50 pips in the last hour or so