Market participants will be eager to hear what Draghi and Weidmann have to say today following comments by Constancio yesterday which were received as supportive of sovereign QE. Constancio said that the ECB could decide to buy sovereign debt in Q1 2015, in proportion of ECB’s capital keys, if the adopted measures failed to lift its balance sheet. More importantly, he offered new fundamental justifications for sovereign QE, saying that the effect would go “well beyond the direct effect on the yields of the purchased securities” and that the moral hazard argument was not valid. Bundesbank President Weidmann may see an ... (full story)