Market Reaction Indicates Skepticism about Stabilization Fund, Concerns over Growth Slowdown. Yield Spread Helped by ECB Purchases
By admin | May 17, 2010
It’s been a week after announcement of the EU/IMF 750B euro Stabilization Fund and ECB’s pledge to buy public and private bonds as well as reintroduction of several refinancing operations. While such moves may alleviate panic in bonds and stocks that happened in previous weeks, the majority in the market does not believe the actions are effective to contain fiscal problems in the Eurozone.
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