So say Reuters citing 3 sources " with direct knowledge of the discussions"

  • The growing scarcity of German government bonds makes any major extension of the European Central Bank's asset buying scheme difficult and this will be a key consideration when policymakers decide whether to extend the buys, three sources told Reuters

  • German sovereign debt available for purchase by the ECB will be exhausted, at the latest, by the middle of next year, so a meaningful extension would require a redesign of the programme, a contentious issue since growth and inflation are both slowly moving in the right direction, sources with direct knowledge of the discussion said.

  • The 2.3 trillion euro bond buying programme, designed to revive inflation, is set to run until the end this year but even if policymakers agree this fall to wind it down, an orderly reduction known as tapering would carry it well into next year.

  • The problem is that the ECB's self-imposed rules mean it can only buy up to one-third of each country's debt and given Germany's relatively low debt level, it is only months away from reaching this limit.

The ECB has not put a deadline on extending or winding down the scheme but a decision is likely either on either Sept 7 or Oct 26, giving markets several months to prepare.

The ECB have declined to comment.

EURUSD unfazed at .11166 EURGBP dipping again to 0.8768 though and helping to hold cable above 1.2720, or vice versa.

ECB- Lots to discuss before year-end