Markets continue to digest the news of leaked documents from the European Central Bank proposing a €50 billion per month bond-purchase program. Eric Green, head of U.S. rates and economic research at TD Securities, says that, despite the headlines, there are still a lot of details missing that will add to market volatility on Thursday. “Is the ECB buying €50 [billion] a month through 2016 beginning in March – implying a buying program north of EUR1 T – or is the buying program confined to 2015 – implying EUR500 – with the option to do more based on incoming data?” he says. “In the case of the former it would be more than expected and in the case of the latter possibly less than expected.” However, he adds that the theme is clear that central banks around the world are “taking more aggressive action to shore up wobbly growth and a ubiquitous decline in actual and implied inflation.”
