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MNI BRIEF: QT Sends Long Rates Higher, ECB Blog Says

Peripheral bonds are more exposed to reductions in ECB bond holdings, an ECB blog says.

MNI (ROME) - A EUR1 trillion reduction in the European Central Bank’s bond holdings portfolio could increase long-term risk-free interest rates in the euro area by approximately 35 basis points, with Italian and Spanish bonds seeing rises of 45 and 50 basis points respectively, according to estimates published by the ECB in a blog on Thursday, based on its Survey of Monetary Analysts.

The blog draws on analysts’ expectations for long-term interest rates and ECB policy rates, using data collected from December 2022 to December 2023. 

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MNI (ROME) - A EUR1 trillion reduction in the European Central Bank’s bond holdings portfolio could increase long-term risk-free interest rates in the euro area by approximately 35 basis points, with Italian and Spanish bonds seeing rises of 45 and 50 basis points respectively, according to estimates published by the ECB in a blog on Thursday, based on its Survey of Monetary Analysts.

The blog draws on analysts’ expectations for long-term interest rates and ECB policy rates, using data collected from December 2022 to December 2023. 

Keep reading...Show less