Sentences with phrase «buying by central banks»

The incremental buying by central banks competed for the available supply with natural demand from those seeking income producing assets, driving up bond prices and down yields.

Not exact matches

Under this hypothetical policy, governments transfer money directly to taxpayers to encourage spending, a handout funded by issuing bonds with a coupon of zero and no maturity date, which central banks buy.

Investors flocking into bitcoin are taking a risk by buying at such high prices, the vice president of the European Central Bank (ECB) Vitor Constancio told CNBC Wednesday.

If Yellen's Fed fails to convince Wall Street about the policy path, a rate increase could trigger financial turmoil of the sort seen in 2013, when investors were caught off guard by the central bank signaling an end to its bond - buying program.

Some investors are now making calls that the euro zone's central bank could end its massive bond - buying program by the end of next year, with a potential rate increase in the fourth quarter.

Until Tuesday, the central bank had pledged to pump $ 1.1 trillion into markets via its asset - buying and lending program by the end of this year, but had made no commitment on whether to maintain the balance beyond 2014.

It started with the Swiss National Bank's (SNB) decision to unpeg its currency from the euro earlier this month, followed by a larger - than - expected bond - buying program from the European Central Bank (ECB) on January 22.

Spooked by a sudden 19 % plunge in the Shanghai Composite Index, regulators halted initial public offerings, suspended trading in shares accounting for 40 % of market capitalization, forced state - owned brokers to promise to buy stocks until the index reached a higher level, mobilized state - controlled funds to purchase equities, and promised unlimited support from the central bank.

By providing liquidity to the broader eurozone (in the form of its monthly bond - buying program), the European Central Bank (ECB) is helping to limit the scale and duration of any contagion related to events in Greece.

Authorities suspended initial public offerings, introduced a $ 120 billion market stabilization fund backed by the central bank, and encouraged executives to buy company shares.

As foreign central banks buy CGBs, the PBoC does not intervene and the RMB rises enough that the rise in foreign purchases of CGBs is matched by the combination of a decline in China's current account surplus and an increase in China's capital account deficit.

Asked about Greece — a special case because of the political uncertainties there and because the country continues to labor under an international bailout program overseen in part by the European Central Bank — Mr. Draghi said that the bank could buy Greek boBank — Mr. Draghi said that the bank could buy Greek bobank could buy Greek bonds.

In a further compromise, some of the risk from bond buying will be taken by the European Central Bank and some by national centralCentral Bank and some by national centralcentral banks.

A: No, I think that when interest rates are constrained by the zero bound, it is appropriate for central banks to look, if conditions warrant, for other ways to be expansionary and swapping short term assets for long term assets or what is the equivalent of a liquidity trap, printing money and buying long term assets, can be a reasonable solution.

Russia's central bank has used its foreign exchange to buy rubles, usually via forward contracts negotiated with the banks that were formed by the leading oligarchs.

The decision by the U.S. Federal Reserve to move away from its quantitative easing policy — in which the central bank creates billions of dollars to buy financial assets each month — comes amid signs the American economy is beginning to heat up, which would boost demand for Canadian imports.

Having taken short rates to zero, for the first time in history, the global central banks sought to lower the long end of the curve by buying bonds.

Sentiment continues to be cushioned by European Central Bank (ECB) bond - buying and subdued energy prices.

Former Fed Governor Stein highlighted that Federal Reserve's monetary policy transmission mechanism works through the «recruitment channel,» in such way that investors are «enlisted» to achieve central bank objectives by taking higher credit risks, or to rebalance portfolio by buying longer - term bonds (thus taking on higher duration risk) to seek higher yield when faced with diminished returns from safe assets.

Many of these factors were outside of central banks» control until the introduction of quantitative easing, which allowed central banks to better influence long - term interest rates by buying bonds on the secondary market to push down long - term rates and to create new bank reserves.

The central bank underlined its determination to keep 10 - year yields close to zero by offering to buy unlimited bonds.

Central banks initiating «short volatility positions» via QE have dampened long - term sovereign bond yields, which crowded out private capital and induced investors to «find something else to do» by buying more esoteric assets

This puts central banks in a position where they will have attempt to control interest rates not by discounting lending, but by buying debt from the government directly, so that markets don't price the new issuance at a level that would destroy the nation's ability to service a debt load that is growing larger all the time.

European Central Bank raises emergency funding cap for Greece by $ 500m, as the central bank reveals details of its $ 1.1 trillion QE blitz ECB will buy $ 60bn - a-month for an unlimited period of time to lift inCentral Bank raises emergency funding cap for Greece by $ 500m, as the central bank reveals details of its $ 1.1 trillion QE blitz ECB will buy $ 60bn - a-month for an unlimited period of time to lift inflaBank raises emergency funding cap for Greece by $ 500m, as the central bank reveals details of its $ 1.1 trillion QE blitz ECB will buy $ 60bn - a-month for an unlimited period of time to lift incentral bank reveals details of its $ 1.1 trillion QE blitz ECB will buy $ 60bn - a-month for an unlimited period of time to lift inflabank reveals details of its $ 1.1 trillion QE blitz ECB will buy $ 60bn - a-month for an unlimited period of time to lift inflation

On the other hand, if the central banks decide to increase their reserves by buying more gold instead, there would be an increase in prices and value instead.

-LRB-...) After years of unprecedented monetary stimulus propping up the world's financial markets, investors are now confronting the reality of an end to the Federal Reserve's bond - buying program, which, as expected, the central bank reduced by another $ 10 billion on Wednesday.

U.S. rates are higher than those in Europe and Japan and the liquidity provided by foreign central banks has been used to buy the U.S. 10 - year note.

And therefore, those are the sorts of concerns, clearly as bond investors we have to have in the back of our mind because while we're still very much supported by central banks continuing to buy government bonds, the Fed [US Federal Reserve] has announced that it is beginning now to not only end the taper, that ended some time ago, they are potentially selling bonds back into the market.

Japan continues to benefit from reasonable valuations, an accommodative central bank and increased equity buying by pension funds.

Conversely, standard — or traditional — monetary policies used by central banks include open market operations to buy and sell government securities, setting the overnight target interest rate, setting bank reserve requirements and signaling intentions to the public.

Outright Monetary Transactions are a bond - buying program announced in September 2012 in which the European Central Bank would offer to purchase eurozone countries» short - term bonds in the secondary market to bring down the market interest rates faced by countries subject to speculation that they might leave the euro.

Examples include the quantitative easing measures adopted by the United States and the European Central Bank's «unlimited» bond - buying program.

Even traditionally low - risk assets such as U.S. Treasuries and German bunds have arguably entered bubble territory, spurred by those measly or negative interest rates and central bank buying.

One is that, to have money, you have to have the precious metal; you can't simply «create money», as the Fed and other central banks currently do, to stimulate spending by making money cheaper than what it will buy.

This dollar buying also increases the number of USD in its own central bank, and that increases the «national value» of Canada, which increases the value of its own currency; however it can mitigate this, if it wishes to have a cheaper currency than the USD, by simply printing more.

He is advising European leaders to: reassess the current plan in Greece - which will reportedly see its debt at 120 per cent of its GDP by 2020 -; recapitalise banks in struggling eurozone economies; and allow the European Central Bank to buy bonds from distressed countries.

Central banks control interest rates like a puppet on a string by raising interest rates or buying up bonds to increase the value of their currency, or lowering interest rates and selling bonds to decrease it.

what about the Russian Central bank buying gold by the TON.

By providing liquidity to the broader eurozone (in the form of its monthly bond - buying program), the European Central Bank (ECB) is helping to limit the scale and duration of any contagion related to events in Greece.

The Swiss franc has appreciated quite a bit recently against the Euro as the European Central Bank (ECB) continues to print money to buy government bonds issues by Greek, Portugal, Spain and now Italy.

The central bank can further lower rates, a subsidy to bad decisions, by buying long debt, and maybe credit - sensitive debt (not yet, but wait and see).

That changed back in 2008, when the central bank began directly buying Mortgage - Backed Securities (MBS) and financing bonds offered by Fannie Mae and Freddie Mac.

Quantitative easing (QE) by the European Central Bank (ECB) not only lowered rates to spur economic development in the region, but it also seems to have eased concerns about the risks of buying from some of the heaviest debt - ridden European countries.

A combination of bond - buying programs by central banks, negative - and zero - interest - rate policies, and continued fears that a new global crisis may be around the corner (a hard path to Brexit being the latest source of such concern) have held the pedal down on the flight to safety.

If the central bank buys bonds, someone must effectively go on the market and by those bonds.

In other words, central banks have forced the middle class to buy stocks by depressing bond yields.

The country's central bank will attempt to ease the pain by selling foreign exchange reserves to buy domestic currency to help prop up its value.

Essentially, by lowering rates, central banks encourage investors to get out of fixed income and buy stocks, which will earn them a higher return.

As the CBO has projected huge deficits PLUS huge debt roll - overs (average maturity down from 7 years to 4 years) up to at least 2019, do you think we could extend the» printing» by foreign central banks — CB's» buying» each others debt — for at least 10 more years?

One way to interpret this is that the market has a high demand for safe assets and so the central banks, by buying bonds with reserves, increase the supply of very safe assets, ie.