ECB Bond-Buying May Backfire

Central bank's commitment to purchases is questioned.

The European Central Bank will need to commit more to its Italian and Spanish bond purchases than it did trying to cap the yields of Greece, Ireland and Portugal.

Last week’s decision to end an 18-week fast and resume buying Irish and Portuguese debt wasn’t unanimous, ECB President Jean-Claude Trichet said at a press conference that coincided with the resumption. Bundesbank President Jens Weidmann was among the dissenters, according to an official familiar with the discussions. The Aug. 7 statement heralding the extension of support to Italy and Spain was issued in Trichet’s name.

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