1 thought on “The effect of direct currency trading OMT”
Erik
August 2, 2013 is the day when the European Central Bank's "Direct Monetary Transaction" (OMT) plan is one year. According to the plan, the European Central Bank is ready to buy government bonds in the secondary market at any time. The European Central Bank announced that OMT was a panic selling for the southern European sovereign debt that caused the euro zone to collapse. It to some extent, this is a pleasant anniversary. The return rate of Spain and Italian bonds, which had risen to unsustainable levels because of concerns about the collapse of the euro zone, had declined significantly after the European Central Bank announced OMT, and continued to decline, although the European economy did not have visible improvements. Perhaps the most happy thing is that the European Central Bank has never been forced to activate this plan. In fact, it did not buy any bonds as planned. The action commitment is enough to appease the market.
August 2, 2013 is the day when the European Central Bank's "Direct Monetary Transaction" (OMT) plan is one year. According to the plan, the European Central Bank is ready to buy government bonds in the secondary market at any time. The European Central Bank announced that OMT was a panic selling for the southern European sovereign debt that caused the euro zone to collapse.
It to some extent, this is a pleasant anniversary. The return rate of Spain and Italian bonds, which had risen to unsustainable levels because of concerns about the collapse of the euro zone, had declined significantly after the European Central Bank announced OMT, and continued to decline, although the European economy did not have visible improvements. Perhaps the most happy thing is that the European Central Bank has never been forced to activate this plan. In fact, it did not buy any bonds as planned. The action commitment is enough to appease the market.