Gross: ECB Is Running Out of Bonds to Buy

The video discusses the European Central Bank's (ECB) upcoming meeting and the potential impact of Mario Draghi's decisions on quantitative easing (QE). It highlights the importance of the ECB's language and press conference, as well as the market's anticipation of changes in the QE program. The Italian referendum's effect on ECB policy and the challenges faced by Italian banks are also examined. Additionally, the video explores the US Treasury's strategy of issuing longer-dated Treasurys to manage rising interest rates, emphasizing the need for a higher yield to attract investors.

What might investors interpret if the ECB does not extend its QE program?

• As a move towards tightening

• As a sign of economic growth

• As a signal for more bond purchases

• As a reduction in interest rates

How does the Italian referendum potentially affect ECB's policy decisions?

• It results in a decrease in bond yields

• It may influence the handling of Italian banks

• It causes a significant rise in interest rates

• It leads to immediate economic growth

What is the main concern regarding non-performing loans in Italy and other countries?

• They are a minor issue

• They lead to immediate economic recovery

• They cannot be ignored and hidden

• They can be easily resolved

What is the purpose of selling longer-dated Treasurys according to Steve Mnuchin's proposal?

• To reduce the supply of bonds

• To cushion the effect of rising interest rates

• To increase short-term interest rates

• To decrease the national debt

What yield premium is suggested for a 50 or 100-year Treasury compared to shorter-term bonds?

• 60 to 70 basis points

• 40 to 50 basis points

• 30 to 40 basis points

• 10 to 20 basis points