For the fourteenth consecutive week, the European Central Bank did not buy Eurozone government bonds on the secondary market. The Institute itself communicates it in the document in which it announces a funding target, in the refinancing auction scheduled for tomorrow, of 210,50 billion, down from 212 billion last Tuesday and with bonds reaching maturity for 1,364 billion. The ECB will conduct tomorrow's p/t auction at a fixed rate of 1%.
Given that it is "premature" to think about exiting the anti-crisis measures, European Central Bank 'cannot replace governments' on what to do to resolve debt crisis, warned Joerg Asmussen, German member of the Executive Board of the ECB. He said speaking at a conference, it is up to the countries of the area to proceed with the consolidation of public finances and with structural reforms aimed at boosting economic growth and employment. And it is always up to the countries of the currency area to intervene to strengthen the banking systems.
Therefore, the ECB's calming maneuvers have not resumed, despite the increased tensions on the markets and direct calls from some countries. Ten-year bond yields hit new all-time highs today in Spain, well beyond the alarmist threshold of 5%.
