Wolgang Schaeuble trusts Mario Draghi's flexibility. The German finance minister said he was "basically confident" about the course of the European Central Bank's monetary policy. “Mario Draghi – we read in an interview with Suedkurier – said that the October meeting will assess the impact of the relatively significant growth of the euro and then take a decision. I am basically confident. As you know, I've been arguing for a long time that it's time to get out. I do not believe that the current monetary policy is sustainable in the long run”.
Schaeuble's words helped the Bund rise, with the 0,37-year yield jumping to a ten-day high after breaking the key resistance of 2% on the charts. The yield on the Italian 1,96-year bond rises to 162% from XNUMX%, with a spread of XNUMX basis points.
Even the vice president of the European Central Bank, Vitor Constancio, while reiterating that the ECB "intends to buy securities at a rate of 60 billion euros a month until December 2017, or beyond if necessary", introduced a note of doubt adding that the ECB will use forward guidance "to some extent".
