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Friday 15 December 2017

ECB completes €60bn of bond buys in April

European Central Bank (ECB) headquarters in Frankfurt. Reuters
European Central Bank (ECB) headquarters in Frankfurt. Reuters

Jana Randow

The European Central Bank said it reached its target of €60bn of bond purchases in the second month of its quantitative-easing program, as investors pushed back against negative yields.

The ECB settled €47.7bn of public-sector purchases in April, and filled the rest of the monthly quota with covered bonds and asset-backed securities.

That takes the total sovereign and supranational debt bought so far to €95.1bn. The weighted average maturity of holdings fell to 8.25 years from 8.56 years at the end of March.

Investors wiped €55bn off the region's government bonds on April 29 as they shunned European debt amid signs of the return of inflation, and dealt Germany's 10-year bonds their steepest two-day loss in more than three years. Euro-area consumer prices ended a four-month run of declines in April, underpinning claims that QE is already starting to work.

Irish Independent

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