Money Makers Mentor

ECB Increases Bond Purchases To Slow Down Surging Yields

The European Central Bank (ECB) has increased the weekly pace of its emergency bond purchasing program to its highest level in three months.

Net purchases settled during the week of March 17 rose by 21.1 billion euros ($25.2 billion). This is the highest amount since the start of December. Redemptions did reduce that same figure, however.

German bonds held marginally higher on this day, as 10-year yields dropped one basis point to minus 0.31%. Their Italian counterparts remained steady at 0.66%, with the spread between the two hovering above 2021 lows. The euro, on the other hand, rose 0.2% to $1.1925.

Earlier in March, ECB policymakers decided to significantly increase bond buying under the program. The program is due to run for at least another year. This occurred after a globa…

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