Trial now
US TSY FUTURES

TYH2 Blocked

OIL

Firmer Since Settlement

CROSS ASSET

Commodity-Tied Dollar Bloc Leads

JGBS

Cheaper On Wider Impetus

AUSSIE BONDS

YM Off Lows, Trouble Staying Offered In Wake Of GDP

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The scarcity of euro area safe assets as a result of the European Central Bank's Public Sector Purchase Programme (PSPP) led to significant decreases in repo market refinancing costs for those German and European banks already holding them, a paper published by the Bundesbank argues, leading to higher profits in repo intermediation business, increased credit supply and lower rates for short-term corporate loans.

The scarcity of safe assets therefore had positive effects both for the owners of safe assets and the euro area monetary policy transmission mechanism, author Johannes Tischer concludes.