Sub-Euribor pricing moves closer as QE approaches

European inflation, as well as expectations for inflation, are continuing to fall and the European Central Bank is likely to announce a quantitative easing (QE) programme in December, economists told The Cover on Thursday. With core yields set to tumble the allocation of real money demand to the periphery will accelerate and pricing of core covered bonds could become established at sub-Euribor levels, The Cover believes.