- Special Sections
- Public Notices
LONDON (AP) — The European Central Bank stepped up efforts to contain the continent's government debt crisis, as bank president Jean-Claude Trichet announced it would prolong measures to provide ready cash to banks and steady the financial system.
Markets were initially disappointed Thursday when Trichet did not say the bank would go even further and increase its purchases of government bonds. The euro sagged almost a cent during his news conference.
But it quickly bounced back, trading higher on the day on market chatter that the bank might in fact be quietly buying bonds of financially troubled eurozone countries — despite Trichet's reticence on the issue.
By late-afternoon London time, the euro was trading 0.2 percent higher on the day at $1.3164.
Additionally, the ten-year bonds of both Ireland and Portugal suddenly rose.
For the Portuguese government, that's a big relief as it struggles to keep borrowing costs from climbing out of reach and having to follow Greece and Ireland in seeking a bailout from its partner governments in the euro and the International Monetary Fund.
"This gave the impression of increased activity on behalf of the ECB in those markets," said Elwin de Groot, an economist at Rabobank International.
If you currently subscribe or have subscribed in the past to the Los Alamos Monitor, then simply find your account number on your mailing label and enter it below.
Click the question mark below to see where your account ID appears on your mailing label.
If you are new to the award winning Los Alamos Monitor and wish to get a subscription or simply gain access to our online content then please enter your ZIP code below and continue to setup your account.