SYDNEY (Reuters) – Australia’s top central banker flagged low interest rates for an “extended period” on Thursday, driving bond yields to record lows, in a dovish signal that analysts say marks a major shift in the bank’s approach to guiding market expectations.
- BFW 07/25
11:46 *ECB ORDERS REVIEW OF OPTIONS INCLUDING TIERED SYSTEM FOR RATES
BFW 07/25 11:46 *ECB SEES RATES AT PRESENT OR LOWER LEVELS FOR AS LONG AS NEEDED
- *ECB STAFF WILL EXAMINE OPTIONS FOR POTENTIAL NEW ASSET BUYING
- The ECB all but confirms it will maintain a policy of negative interest rates, QE and asset purchases for years and years to come: “The Governing Council also underlined the need for a highly accommodative stance of monetary policy for a prolonged period of time.” @ReutersJamie
- Turkey cut interest rates adding to the dovish narrative.
Qe or asset purchases forever doesn’t sound so farfetched now does it? Pavlovian response by markets new QE= buy stocks and commodities Copper ,oil ,platinum all trading higher on day after a brief dip on the no cut announcement Bunds( new al l(time low yield -.42%,BTPS ( Yields -10 bps) Buxl yields (-4 Bps) all trading higher 10 year yields 2.01% Gold +$8. Draghi Press conf at 7:30 he will be asked what this new Asset purchase program will look like so gyrations in European Fixed income are not over. Euro probing the 1.1100 handle a break results in a new 2019 low and 2-year low.
Earnings FB good, Tesla ugly down 12% Amazon and Goog after close today
7:30 Durable goods and Draghi press conference