ECB limit removal cranks in spreads

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ECB limit removal cranks in spreads

ECB 230x150 euro sculpture
Euro-Sculpture in front of ECB in Frankfurt am Main, Hesse, Germany Photo by: Daniel Kalker/picture-alliance/dpa/AP Images | Daniel Kalker/Daniel Kalker/picture-alliance/dpa/AP Images

The European Central Bank announced on Wednesday night that it would be removing the self-imposed limits on its holdings of sovereign debt for its €750bn pandemic emergency purchase programme. The news drove an impressive reduction in the spread to Bunds on government bonds from the eurozone periphery.

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