Bundesbank Reaffirms Opposition To ECB Bond-Buying: Spokesman

Author: Market News International | Category: News

FRANKFURT (MNI) – The Bundesbank has not relaxed its opposition to
intervention by the European Central Bank in government bond markets, a
Bundesbank spokesman told MNI on Friday.

“The Bundesbank has not changed its views on ECB bond market
interventions,” the spokesman said. “In the Bundesbank’s view, buying
government bonds by the central bank is not the best tool to address the
crisis.”

The confirmation comes in reaction to market speculation following
comments by ECB President Mario Draghi on Thursday, which sparked
expectations of renewed ECB bond buys, pushing up the euro and
triggering a sizable decline in Spanish and Italian debt yields.

The spokesman stressed that his comments were in reaction to market
speculation and not to Draghi’s own words, whose meaning was open to
interpretation.

–Frankfurt bureau tel.: +49-69-720 142 Email: jtreeck@marketnews.com

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