ECB’s Knot said late yesterday that he was sceptical of the benefits of sovereign bond buying. This suggests that the council divided over the QE and also highlights challenges facing Draghi. The prospect of more ECB stimulus lately boosted euro-zone bonds. His comments triggered a sell-off in those bonds. Draghi will find it harder to convince his colleagues to back the QE especially as the benefits of sovereign bond buying are really questionable now, with bond yields already remaining low in the euro-zone.
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