Draji Doesn'T Worry About Liquidity Exhaustion In The Bond Market

Delagi refutes the market's concern about insufficient supply of treasury bonds.

He said there was lack of evidence to support the lack of debt.

So far, the ECB will not have any problems with its bond purchases.

The QE project has enough flexibility to accommodate any problems that may arise.

But in addition to removing interest rates again, forcing bond holders to sell bonds to increase the number of bonds available, Delagi did not say what aspects of the QE could be adjusted when needed.

This may be popular with everyone.

Wall Street knowledge has mentioned earlier that Rating firm Moodie said in the research report that the European Central Bank will find at the end of this year that there will be no more treasury bonds to buy, which is still 9 months away from the QE plan.

Before the launch of the QE, the yield of eurozone bonds was very low, and governments reduced debt issuance to reduce the deficit.

The result is that Treasury bond investors are reluctant to sell treasury bonds because they do not have the right assets.

What's more, the ECB QE project has a limited ratio of bond purchases.

Delagi B, a commentator of the financial times commented on Izabella Kaminska, said that he was worried about the liquidity of the Treasury bonds, perhaps because he was inclined to think that the securities lending program would play an important role in overcoming the prospect of the liquidity of the Treasury bonds.

As Paul Richards, editor of the International Capital Markets Association (ICMA), said in the quarterly report of the association, the repo market may turn the tables on the above issues:

At the March 5th meeting, it was stated that under the Public Sector Purchase Programme, bond purchases could be carried out in a decentralized way, reflecting the project's borrowing.

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The European Central Bank also elaborated on this in April 2nd.

A good repurchase system (or securities lending instruments) will help to regress sovereignty through liquidity.

To solve the problem.

Such a system function is effective.

To some extent, bond lending is the exchange of other bonds rather than cash.

As a result of QE, the effect of expansionary monetary policy will not be offset.

The European Central Bank announced in March 9th that it would launch the QE project under the Public Sector Purchase Programme.

However, in Barclays's view, information on the framework of securities lending has been revealed.

On the outside of the architecture, the tool seems to be more concerned with overcoming bond failure and failure than the steadily cutting euro zone high quality debt varieties.

The European Central Bank announced the overall layout of PSPP securities lending aimed at supporting the operation of the repo market and the bond market.

Lending activities will be decentralized through the central banks of the euro zone member states and the European Central Bank themselves, reflecting the domestic infrastructure and market operations.

As a result, the terms and conditions will be divided according to the qualifications, prices, mortgages, discounts and competitors' qualifications.