Reuters: Primary Bond Buys Possible
Another story on bond buying, which leans bullish for risk assets. While anything can happen, an announcement confirming this approach could spark a big short-covering rally. From Reuters:
European Union leaders are likely to discuss the possibility of the euro zone’s bailout funds buying Spanish and Italian bonds as they are issued, to help ease funding costs for Rome and Madrid, EU officials said on Thursday. The temporary European Financial Stability Facility (EFSF) and its replacement, the European Stability Mechanism (ESM), have a mandate to buy bonds of euro zone countries directly at the primary auction.
