–Adds Comments From Bank Economist On Bond Buys
FRANKFURT (MNI) – European Central Bank President Jean-Claude
Trichet made clear Thursday the ECB has mandated purchases of sovereign
bonds in the secondary markets of some peripheral Eurozone countries.
The move had been expected by market participants. As Trichet
launched the press conference it was reported that bond-buying was
underway.
Asked about the bond purchases, Trichet said, “I will not be
surprised that you will see something on the market. I will not exclude
that.”
When later asked to confirm bond buying was underway, Trichet said,
to the amusement of reporters, that he had already pre-announced it.
He stressed that he had never said the central bank’s bond-buying
program was either “interrupted” or “dormant.”
Christel Aranda Hassel, European economist at Credit Suisse, said
their traders had seen the ECB buying Irish and Portuguese bonds.
It is “good news” that the ECB recognises the need to ease some of
the stiffness in peripheral bond markets, Hassel said, but warned that
it was a half-measure and suggested that the move would only buy time
until the European Financial Stability Fund takes over the fight against
speculators.
The bond-buying is taking place through the ECB’s Securities
Markets Programme.
[TOPICS: M$$EC$,MT$$$$,M$X$$$,MGX$$$,M$$CR$]
