Dislikedmy understanding is what they spend on one thing.. for instance bonds... when they buy spanish... and are at a limit.. they have to sell bonds to make room to buy more. so when at the limit buying Spanish, they cant buy Greek or whoever. . there is little room because they are at limits. they have to sell to buyIgnored
But don't forget, that the ECB (any CB) has the power of intimidation on expectations. They haven't bought anything since Draghi's call, bonds plummeted preemptively as no sane investor will step against the deepest [unlimited] pocket player in the markets (a CB) ... remember the SNB with EC bands...
In simple words as long as the preventive action works is very cheap weapon to use...the problem is if they don't deliver and markets start perceiving that is BS from the ECB (for example Germany Court opposing, etc would have opened that door, etc)... so nothing to sterilize as long the ECB is not massively buying bonds ...
sisse
Pending conversations? PM for a chat...I am mainly in OTM now