ECB looking at lending bonds to stave off a market freeze

Reuters with a sources story out some time ago

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  Considering reducing fail charges, accepting new types of collateral and extending the duration of loans
  
  


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  ECB purchases have strained the repo market
  
  


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  Will look to lend out more bonds to avert a freeze in the market
  
  


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  Decision on bond lending will depend on what other changes it makes to QE program
  
  


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  Details might not be finalised by the Dec meeting
  
  

This looks like a case of the ECB fighting fires. It"s all well and good hovering up bonds but the ECB has to keep markets, such as the repo market, functioning and well supplied. It"s all a round robin in effect, where they buy and lend back to the market they bought them off.

This is more a case of finding out problems that arise as the QE program continues, rather than anything that will materially affect QE.

ECB looking at lending bonds to stave off a market freeze
ECB looking at lending bonds to stave off a market freeze
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