- The ECB will start buying asset-backed securities and covered bonds "within the next few days" as part of its new program, Executive Board member Benoit Coeure has said.
- "The objective (is) to steer the balance sheet toward higher levels and improve transmission to the real economy," Coeure said, speaking at a conference in Riga in Latvia.
- He also called for reforms to help boost the eurozone economy. "Talking vaguely about structural reforms, but not doing them, is the worst of all worlds," Coeure said.
- As you'd expect, Deutsche Bank President Jens Weidmann has reiterated his opposition to ABS purchases and said that they are problematic, particularly if it means a transfer of risk from banks to the ECB. Weidmann is in Riga as well.
- Meanwhile, ECB governing-council member Ewald Nowotny has said that the bank may have to cut its 2015 eurozone GDP forecast from 1.6%.
- The euro is +0.05% at $1.2816, while Italian 10-year yields are -4 bps at 2.51%, although they're still sharply higher for the week. German 10-year Bunds are +3 bps at 0.85% after touching fresh record lows this week, while France is +4 bps at 1.29% and Spain is -3 bps at 2.18%.
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