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ECB not debating abandoning capital key in QE buys - sources
The European Central Bank is not currently considering buying government debt out of proportion to euro zone countries' shareholding in the bank and the hurdle for abandoning this capital key is high, sources close to the ECB said on Friday. Bond markets rallied on Friday after Bloomberg reported that the ECB was considering giving up the capital key due to a shortage of German paper, which investors see as safe and have piled into in the aftermath of Britain's vote to leave the European Union. But sources familiar with the ECB's thinking said that several other changes would be first considered before any such move, ... (full story)