By Antoine Bouvet, Senior Rates Strategist & Benjamin Schroeder, Senior Rates Strategist
The European Central Bank has finally heard the bond market’s cry for help and upped its Asset Purchase Programme ((APP)) 'envelope' by another €750 billion. We provided an overview of the programme in our Rates Daily this morning, here we look into its market implications.
More room to buy sovereign bonds: good for Italy
A €120bn envelope with a greater emphasis on corporate bonds does not leave much space to cap Italian yields. Assuming half of this amount is spent on