Bloomberg reports. The plan excludes Greece and is investment grade bonds. This figure is similar to estimations made by economists. The assets meant for buying have been allocated by the staff according to the report, and naturally this includes bonds that are not AAA.
EUR/USD around 1.1814, up from the lows seen yesterday. This is probably some kind of relief rally after the massive sell-off seen in recent weeks.
This program was presented in a meeting that was not supposed to discuss monetary policy on January 7th. This is a staff program presenting models. The decision awaits for January 22nd. There is no word as if the ECB will buy the bonds directly or delegate it to the national central banks.
What the report does say is that the governors of the ECB were asked not to offer their opinions in this meeting, but rather wait for the January 22nd meeting.
This is a sizable chunk, but is it enough?
There were probably hopes in markets that the size would be even bigger.
More: EUR/USD: Conclusive Breaks On Long-Term Charts – Citi
The reaction to the news is relatively muted, and for two reasons:
- The sum is close to the estimations made by economists – a very round number.
- The markets are awaiting the Non-Farm Payrolls due in a few hours.