Sentences with phrase «to buy government bonds»

The decision to begin buying government bonds on the open market came after a debate that lasted months.

They've been doing that, in part, by buying government bonds.

The policy of buying government bonds in the open market — after banks first have bought them at a lower issue price — gives the banks a quick and easy trading gain.

It absolutely IS done to finance the debt (through the mechanism of buying government bonds with new cash).

It became possible to buy government bonds around the same time.

This is because the ECB faces a couple of restrictions when buying government bonds.

He said that the central bank would begin buying government bonds based on each country's share of the central bank's capital, which is commensurate with their population and gross domestic products.

There were a few dissents, but a majority of the Monetary Policy Committee also opted to create # 60 billion (about $ 100 billion) to buy government bonds over the next six months and # 10 billion to purchase corporate debt over 18 months.

Current measures haven't had time to work and challenges including Greece's political crisis make buying government bonds difficult, he said.

The ECB's Draghi dropped more hints about how the central bank could support struggling countries, suggesting it was free to buy government bonds maturing in three years or less.

FRANKFURT — The European Central Bank is widely expected to announce on Thursday that it will finally begin buying government bonds as part of a so - called quantitative easing program.

The bottom line of Draghi's answers was that the ECB would only buy government bonds rated lower than investment grade if the countries are in a bailout programme and the programme is not in a review period.

I think there will likely be a moving out on the risk spectrum as the ECB buys government bonds, and investors then have to find something else to own to get yield.

This increases the chances that the ECB will keep buying government bonds on a huge scale beyond December 2017 and it increases the likelihood that the ECB will keep its policy rate at their current well beyond 2018.»

Keynesian thinking presumes that the financial markets will readily buy government bonds to finance the stimulus.

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.

«I want them to be able to buy government bonds if they feel it's warranted,» he says.

It was almost exactly a year ago that the E.C.B. set eurozone precedent by buying government bonds and other assets.

The answer is straightforward: The Bank of Japan can buy government bonds on the open market, paying for them with either currency or deposits at the Bank of Japan, what economists call high - powered money.

The threat of a trade war would also freak out the overseas investors we count on to buy our government bonds, and keep our interest rates at super-low levels.

It's similar to the U.S. government's quantitative easing, but rather than trying to buy government bonds to push interest rates lower — rates are already at zero — the goal is to push the yen down and combat chronic deflation.

When you buy government bonds, you are loaning money to the government, which agrees to pay you back with interest.

These paybacks have pushed up the yen's exchange rate by 12 % against the dollar so far during 2010, prompting Bank of Japan governor Masaaki Shirakawa to announce on Tuesday, October 5, that Japan had «no choice» but to «spend 5 trillion yen ($ 60 billion) to buy government bonds, corporate IOUs, real - estate investment trust funds and exchange - traded funds — the latter two a departure from past practice.»

So yen were borrowed to convert into dollars, euros, Icelandic kroner and Chinese renminbi to buy government bonds, private - sector bonds, stocks, currency options and other financial intermediation.

In the opposite case, if the BOJ does not stick with its word, they will take the measures I have mentioned above, printing more yen to buy government bonds to keep the government from defaulting.

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.

The tax system operated as a siphon collecting revenue to pay the German and French banks that were buying government bonds (at rising interest risk premiums).

He'd rather put the cash portion of his portfolio in the metal than the U.S. dollar, which is getting debased thanks to the Federal Reserve's quantitative easing program (it's buying government bonds to keep fixed - income interest rates low and help stimulate the economy).

And many people don't even realize that they are buying government bonds.

They had to form very well, and people had been more cautious and bought government bonds, government securities, T - bills and so forth.

Mike Swan, an associate portfolio manager at Canso Investment Counsel, says that while the chance of default in a corporate bond is always present, investors might actually be taking a greater risk by buying government bonds.