The ECB changed the parameters of its bond purchasing program, removing the deposit limit floor. Under the new rules governing asset purchases the ECB will be able to purchase government bonds which are yielding less than its deposit rate. That would enable the ECB to begin buying ultra-safe government bonds, such as German short-term debt. Source Investing.com
China’s monthly trade surplus with the United States rose to a record high of US$34.1 billion in September on the back of an escalating trade war that shows little sign of cooling. The figure, released on Friday by the customs administration, represented a 10 per cent increase from the US$31.05 billion surplus booked for August, suggesting Washington’s tariffs on imports of Chinese products have yet to have the desired effect of narrowing the trade gap between the two countries. Source South China’s Morning Post
The U.S. federal government closed the 2018 fiscal year $779 billion in the red as tax cuts hit revenues and the government paid more to service a growing national debt, according to Treasury Department data released on Monday. Source Reuters
Portuguese and Italian government bond yields fell on Monday, outperforming euro zone peers after Moody’s ratings agency upgraded Portugal by one notch, back to investment grade, and Italy’s budget plans came back into focus. Source Reuters
