Thursday, August 18, 2011
Pressure in the boiler rises
"The European Central Bank needs to back up last weekâ€™s record purchases of government debt with further buying to prevent speculators from driving borrowing costs for Spain and Italy back up again". "The ECB may have spent around 12 billion euros in the second week of bond purchases, according to Harvinder Sian, an interest-rate strategist at RBS in London". (don't they need some 'elf and safety advice?). Robecoâ€™s Penninga said â€œNew investors need to be attracted. You are only going to attract them with higher yields".