MBS Day Ahead: All Eyes on Draghi as Markets Digest ECB Changes

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Posted To: MBS Commentary

The European Central Bank (ECB) broke with tradition to some extent, as it announced several policy changes in the 7:45am press release. This release is typically home to more superficial policy statements with the bigger changes being communicated at the 8:30am press conference with the ECB President Mario Draghi. That leaves us to wonder what, if anything, Draghi will be able to add to what's already been announced this morning, namely, the ECB: cut its main refinancing rate to 0.00 from 0.05 cut its marginal lending facility rate to 0.25 from 0.30 cut its deposit rate to -0.4 from -0.3 expanded monthly purchases to €80bln from €60bln expanded the list of assets to include non-bank investment-grade debt announce 4 new TLTRO's, the long-term refinancing operations announced…(read more)

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