The master plan European Central Bank President Mario Draghi presented yesterday may be “meaningless” if it is restricted to buying government debt with maturities of less than a year, said Christoph Rieger, head of interest-rate strategy at Commerzbank AG.
European Central Bank President Mario Draghi stuck to his view that the euro region will gradually recover later this year even as officials trimmed their economic forecasts and considered cutting interest rates.
Italy’s five-year notes dropped, pushing yields to the highest level in more than a week, as borrowing costs increased at a sale of 5.9 billion euros ($7.8 billion) of government debt maturing in 2017 and 2022.
The London interbank offered rate, the benchmark for $360 trillion of securities, may not survive allegations of being corrupted unless it’s based on transactions among banks rather than guesswork about the cost of money.
The rate banks pay for three-month loans in dollars rose to the highest in almost nine months as Europe’s near-$1 trillion support plan in the wake of Greece’s budget crisis failed to encourage banks to step up lending.
Spain’s government bonds rose for a fourth day on speculation euro-region policy makers will resume purchases of so-called peripheral debt to help contain surging borrowing costs and ease the debt crisis.