ECB Repurchasing Euros Bonds

Rising credit risk Italian referendum on Greece, relapse of the markets in the wake of financial stocks … The beginning of the week is feverish stock market, like the euro, which falls on Tuesday morning at 1.3815 / $. The European Central Bank announced it had bought about 4 billion euros of government bonds during the week ended October 28, slightly less than the amount of the previous week, which is still so … The ECB had indeed bought 4.5 billion euros of bonds during the week ended October 21.

Since the beginning of the “Securities Market Program” launched in May 2010, the ECB has repurchased 173.5 billion euros, against 169.5 billion euros a week earlier. Recall that the ECB reactivated on August 4 the bond buyback program, dormant since March, after a credit alert on Italy and Spain, while strongly attacked in the bond markets.

Moreover, the ECB would be reached Monday on the market to buy Italian and Spanish debt in the short term to counter the widening of their yield spread with German Bunds, some traders reported. The amount of bond purchases in Italy, however, was “limited”, while he was more aggressive on Spanish debt …

Greek side, Prime Minister Papandreou said on Monday night to organize a referendum on the European agreement reached last week on the back Greek and erasing more than half of the country’s debt. The referendum would be set up for the start of 2012. Previously, a vote of confidence on the same agreement “anti-crisis” will be held in Parliament in the coming days