ECB fires bazooka defying expectations

It seems we were conservative in our estimates, while European Central Bank wasn't in their actions.

Actions from ECB 

• Main refinance rates were cut by 0.05% to zero, so it's basically free money for banks and institutions.

• Marginal lending rate reduced by 5 basis points to 0.25%.

• Deposit rates reduced by 10 basis points to -0.4%.

• Purchase program size increased by €20 billion/month to €80 billion per month.

• Investment grade nonbank corporate bonds added to PSPP program.

• Launched four new LTROs.

Market is reacting as expected.

Bond yields are down across Europe. German DAX is up 2.6%, European blue chip index, EuroStxx50 is up 3.5%.

Euro is down -1.3% against Dollar, trading at 1.084.