Bond Traders Soothed by Draghi Before Data on Euro-Area Growth
- ECB revised purchase limit for bonds under QE program
- Italian 10-year bonds post first advance in three weeks
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Bond investors can look forward to next week with reassurance from the European Central Bank that it will act to counter deflationary pressures. Next they need to prepare for a euro-area economic report that will keep growth issues in the spotlight.
Italian government bonds advanced for the first time in three weeks after the ECB stirred speculation it will extend asset purchases to help boost inflation and growth. President Mario Draghi revamped the program Thursday, raising the purchase limit to 33 percent per issue of a country’s debt stock, up from 25 percent previously. That helped boost bonds across the region.