“The main message is ECB assets are set to expand as others contract,” promises ECB’s Mario Draghi, adding that “ABS buying is to begin shortly.” Shrugging off any rumors of mutiny or lack of sovereign QE, the markets bought every stock market and risky bond with both hands and feet. EURUSD plunged under 1.24 – its lowest since August 2012 as peripheral bond spreads tumbled 10-15bps. US Treasury yields pushed higher and stocks knee-jerked higher. The USD index is now up 1% on the week.
The shine is coming off as reality hits
- *DRAGHI SAYS ECB WON’T BUY EU1 TRLN
EUR tumbles sending bond yields and stocks higher… for now
and plunging peripheral bond spreads…
and this is what happened to gold…
Charts: Bloomberg
