In Funhouse Mirror Fixed Income Market, Zero Is No Obstacle

Last week, Riccardo Fraccaro, cabinet undersecretary to Italian Premier Giuseppe Conte, suggested the ECB should considering canceling some of the sovereign debt bought during the course of the pandemic. "Monetary policy must support member states’ expansionary fiscal policies in every possible way," Fraccaro, speaking during an interview in Rome, said. "Canceling sovereign bonds bought during the pandemic or perpetually extending their maturity" would be one way to achieve that, he added.