During the past two years, the ECB increased total assets by $1.8 trillion (close to the total amount of outstanding government debt of either Italy or Germany), while 10-year Bund yields fell by 200 basis points. What would happen if the ECB stopped increasing its balance sheet? Just sayin.’
What if the ECB just stopped increasing its balance sheet?
The ECB increased assets by $1.8 trillion in two years, while 10-year Bund yields fell by 200 basis points. Enough, already?
