Quantitative easing: The ECB headquarters in Frankfurt, Germany. The bank only bid for 10 of a Deutsche Kreditbank AG covered bond sold on Tuesday, after previously getting about 20 of all euro covered deals since March, according to analysts at ABN Amro Group NV. — Bloomberg
LONDON: The European Central Bank has taken a first step in the final wind-down of its €2.5 trillion asset purchase programme. Credit markets barely flickered, with another rush of bonds set to price yesterday.
The bank only bid for 10% of a Deutsche Kreditbank AG covered bond sold on Tuesday, after previously getting about 20% of all euro covered deals since March, according to analysts at ABN Amro Group NV. The €500mil note will likely be the first covered deal to settle in October, when the ECB will halve its purchase programme before ending fresh stimulus in December.
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