Blanket EU-ECB action sparks turnaround

An unprecedented support package for the euro-zone of up to Eu720bn from the European Union and International Monetary Fund alongside a new, broad European Central Bank purchase programme sparked a sharp rally in credit markets today (Monday). The moves bring closer the prospect of a reopening of the covered bond market after more than two weeks without issuance, even if the relationship between the new ECB programme and its covered bond buying is unclear.