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Sat 05 May 2010Trichet suggests action on bonds would be last resort
THE EUROPEAN Central Bank is under growing pressure to take fresh action to stem a widening crisis of confidence in euro zone government debt, though it remains likely for now to stop short of buying bonds.
Markets punished the euro and bonds on the weak periphery of the zone after ECB president Jean-Claude Trichet said central bankers did not even discuss at its Thursday meeting what analysts have dubbed “the nuclear option”. Market conditions may not so far be bad enough to convince the ECB to take that controversial step.
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