ECB Purchased €134 Million In Sovereign Bonds In Week Ended Sept. 24, Compared To €323 Million Previously
The ECB has announced that for the week ended September 24, the Fed's much more impotent European cousin has purchased €134 million in sovereign bonds under its Securities Markets Program. This compares to an increase of €323 million in the preceding week, and €237 the week before that. While the ECB does not provide the breakdown of the actual bonds purchased, one can be certain that the names of Ireland and Portugal featured prominently in the trade tickets. And even as the ECB is caught between a rock and a hard place, knowing full well it would like to resume to bond purchases to the multi-billion level seen at the beginning of the Euro crisis, such a move would infuriate Germany - as the WSJ highlights: "Elevating [purchases] back up to several billion euros a week would likely
spark renewed opposition in Germany, where both the central bank and the
public were against buying government bonds, Mr. Annunziata says. In
addition, he says, the ECB may want to "keep up the pressure" on
governments to stick to their austerity pledges." Yet even at the moderated pace of sovereign debt monetization, the holdings by the Eurosystem of securities held for monetary policy purposes increased to €122.8 billion. What is not included in this number is the hundreds of billions in capital pledged directly to host banks in exchange for covered bonds, bankrupt stocks, beads, and other worthless objects which Jean Claude Trichet seem to believe are worth 100+ cents on the dollar even in an apocalypse case.