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ECB’s Bond-Buying Program Is Yield Curve Control, Says Citi
The European Central Bank has taken a step closer to its Japanese peer and effectively launched yield-curve control on the region’s bond market, according to Citigroup Inc. After the ECB scrapped its 33% issuer limits, the bank’s Pandemic Emergency Purchase Program can buy bonds almost freely across the region, enabling it to control the shape of the curve, according to Citigroup. Policy makers now have the ability to keep the yield premiums of Europe’s most-indebted countries in check, preventing them from spiraling into another sovereign debt-crisis. The Bank of Japan pioneered yield-curve control in 2016, ... (full story)