Failure to print money could reverse periphery rally, analysts warn

Ever heavier hints by European Central Bank officials that they could bring quantitative easing to the eurozone to tackle deflation may have helped a pair of eurozone periphery sovereigns to hold yield-busting bond auctions this week — including Portugal’s first in three years. But if the central bank rules out buying government bonds as part of a QE programme, it could risk damaging the remarkable rally in periphery debt since the start of the year, analysts warned this week.