Posted To: MBS Commentary
Bond markets had a volatile reaction to this morning’s European Central Bank press conference. Part of the problem is that Mario Draghi was seemingly arguing both sides of the QE debate. On the one hand, he said that the committee had moved from “expectation” to “intention” when it came to expanding the balance sheet, but shortly thereafter said that the ECB didn’t have enough info to make a decision and would have to wait to see how the slide in oil prices would ultimately affect inflation. Near the end of the press conference, Draghi went back to the other side of the fence by saying that it would be illegal for the ECB NOT TO DO QE if QE was the only way for them to adhere to their mandate. That kind of talk can only serve to confuse markets because no one truly…(read more)
Via:: MBS MID-DAY: Bonds Bounced Around by ECB Press Conference
