ECB Announces 750 Billion Euro Pandemic Bond-Buying Program

• The European Central Bank (ECB) launched an extra emergency bond-buying program worth 750 billion euros ($820 billion) in the latest attempt to calm markets and protect a euro-area economy struggling to cope with the coronavirus epidemic.
• The decision in an unscheduled meeting on Wednesday night is the latest in an escalating global response to an outbreak widely seen driving the economy into recession this year. The measures on Wednesday include:
• A temporary asset purchase program to buy public and private-sector securities, worth 750 billion euros and running until at least the end of 2020. This program will cover all assets eligible under current quantitative-easing program, and will be extended to commercial papers of sufficient credit quality.
• The program will continue until the ECB judges the crisis phase of the pandemic to be over, but not before the end of this year. The ECB will consider raising its self-imposed limits on QE holdings, and stands ready to increase the size of its asset purchase programs.

(Source: Bloomberg)