Bond traders read clear message from ECB ruling: ‘Watch out’

The ECB may now have to be more careful how it buys debt

BERLIN: A critical German court ruling on the European Central Bank’s (ECB) half-decade of quantitative easing (QE) is worrying the likes of Aberdeen Standard Investments and UBS Group AG.

They’re concerned of a potential knock-on effect on the central bank’s latest stimulus to counter the coronavirus – the Pandemic Emergency Purchase Program (PEPP) – that has served as a backstop to the eurozone’s most fragile bond markets in recent weeks.