ecb

2 June 2020

AFS Morning Comment June 2 2020

Let’s get this out of the way first. The ECB will expand the QE program at Thursday’s Governing Council meeting. In a comment last week we suggested another QE “envelope” of 750 billion euros as…

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AFS

29 May 2020

AFS Morning Comment May 29 2020

As far as the Euro Area economy is concerned, the glass is half full. And that’s not just because we finally have some Euro Area wide coordinated fiscal stimulus – the Merkel-Macron plan. Oh, and…

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ecb

6 May 2020

AFS Morning Comment May 6 2020

An ironic interpretation of the German Supreme Court’s verdict on the ECB’s Public Sector Purchase Programmme (PSPP)[1] is that the judges want a better mix of fiscal and monetary stimulus. With more emphasis on the…

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Beursplein 5 voor offices (1)

23 April 2020

AFS Morning Comment April 23 2020

A disclaimer first. This will not be a do-or-die EU summit on the economic rescue of the region. We dub it the ‘webcam summit’, by the way as our dear leaders cannot meet in person…

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ecb

22 April 2020

AFS Morning Comment April 22 2020

Or the part where we explain how disappearing liquidity tightens the Eurozone money market, and if and when things will get better. According to daily liquidity conditions data, since March 18, the date of the…

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AFS

15 April 2020

AFS Morning Comment April 15 2020

A rather worrying development is that the ECB gradually stepping up bond purchase (relatively speaking) hasn’t resulted in a further compression of peripheral yields and spreads. Below is the heatmap for the bond market, showing…

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