FINANCIAL TIMES: …The euro strengthened and the bond prices of debt issued by stressed eurozone countries rallied after Mr Draghi said the ECB was “ready to do whatever it takes” to preserve the single currency. “Believe me, it will be enough,” he told a conference in London…
The yields on Spanish and Italian bonds, which move inversely to prices, have soared to levels that risk making borrowing unsustainable over the long term. Spain’s government had called for the ECB to reactivate a dormant programme of buying sovereign bonds to drive down yields. The bank has bought more than €210bn of bonds since 2010…
Julian Callow, head of international economics at Barclays, said Mr Draghi was echoing language used by the ECB to justify bond purchases in the past. “It is a signal that the ECB is closer to reactivating bond purchases if all else fails, which is important at a time when pessimism had been welling up in markets,” he said.… (more)
