Overview: The ECB boosted this year's asset purchases, lightened capital requirement rules, liberalized collateral requirements, suspended the annual stress tests, and provided for long-term loans at a rate as much as 25 bp below the negative 50 bp deposit rate. The market was nonplused. Later in the day, the Federal Reserve announced $2 trillion in new repo operations starting yesterday and continuing through early next week. It also indicated that its purchases would not be limited to bills anymore, but would match the maturity distribution of the outstanding Treasury debt.
The market reacted positively for