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10 Apr 2015
ECB's QE achievement so far in 2015
FXStreet (Mumbai) - The European Central Bank’s (ECB) QE program has achieved stellar results restricted to financial markets. Though, still very far from the 2% inflation target, the QE program has achieved enough in terms of the performance of financial assets across the Eurozone.
Stock market rally
The QE operation announced in January, and officially begun in March, pushed the bond yields to record lows and forced money into the more risky assets – stocks. Germans stock markets trade at record highs with 25% gains so far in 2015. French stocks have gained 22%, while Portuguese stocks and Spanish stocks are up 31% and 14% respectively.
Bond yields at record lows, into the negative territory
The benchmark yields across the Eurozone have been hitting record lows in anticipation of the QE program since the fourth quarter of 2014. Germany has negative yields on bonds maturing up to 6 years. The benchmark yield in Germany trades near 0.20% level.
The ECB, with its QE program, and the Fed telegraphing an interest rate hike widened the spread between the German 10-year yield and the US 10-year yield to 180.00 points.
EUR/USD at more than decade lows
The pair dropped to 1.0461, which is the lowest since 2003. The major part of the weakness can be attributed to the ECB’s QE program, while part of the weakness was also due to speculation of an interest rate hike in the US in 2015.
Stock market rally
The QE operation announced in January, and officially begun in March, pushed the bond yields to record lows and forced money into the more risky assets – stocks. Germans stock markets trade at record highs with 25% gains so far in 2015. French stocks have gained 22%, while Portuguese stocks and Spanish stocks are up 31% and 14% respectively.
Bond yields at record lows, into the negative territory
The benchmark yields across the Eurozone have been hitting record lows in anticipation of the QE program since the fourth quarter of 2014. Germany has negative yields on bonds maturing up to 6 years. The benchmark yield in Germany trades near 0.20% level.
The ECB, with its QE program, and the Fed telegraphing an interest rate hike widened the spread between the German 10-year yield and the US 10-year yield to 180.00 points.
EUR/USD at more than decade lows
The pair dropped to 1.0461, which is the lowest since 2003. The major part of the weakness can be attributed to the ECB’s QE program, while part of the weakness was also due to speculation of an interest rate hike in the US in 2015.