FXstreet.com (Barcelona) - Sentiment was buoyant during the Asia session as the ECB's policy announcements, reports of more stimulus from China and hopes for a strong payrolls print today have led to a return into risk assets en masse. 5% in 2012 and from 1.6% to 1.9% in 2013 – according to Research Analyst Geoffrey Yu at UBS, “this makes the odds less likely for any rate cuts in the foreseeable future.”
As hoped, Draghi announced the modalities of the ECB's new bond-buying program called Outright Monetary Transactions (OMT). The OMT program will be open-ended and the liquidity created by it will be fully sterilized.
The program will focus on buying bonds with maturities of between one and three years. Draghi stressed on the strict conditionality of the EFSF/ESM program, noting that the Governing Council could suspend the program for a member state in case of non-compliance.
As hoped, Draghi announced the modalities of the ECB's new bond-buying program called Outright Monetary Transactions (OMT). The OMT program will be open-ended and the liquidity created by it will be fully sterilized.
The program will focus on buying bonds with maturities of between one and three years. Draghi stressed on the strict conditionality of the EFSF/ESM program, noting that the Governing Council could suspend the program for a member state in case of non-compliance.
