The Mumble: Why it doesn’t matter what the Bundesbank thinks about OMT

Since the ECB unveiled the Outright Monetary Transactions (OMT) scheme last autumn, peripheral bond yields have enjoyed a spectacular rally and the spectre of an Italian or Spanish bailout has receded. The prospect of earning decent returns from those countries’ bonds is receding at a similar rate. That the Bundesbank has raised objections to the OMT scheme should not reverse that trend.