Indeed favorable bond market reaction to Draghi's OMT program will, paradoxically, delay its launch.
Draghi was dodgy because there are several technical hurdles to implementation of the OMT .
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As a result, any immediate obstacle to the ESM, the fiscal compact and the OMT disappeared.
The OMT could well be that "walking stick" and a way to avoid a dreaded second bailout.
Patients who had hemodynamically significant lesions as assessed by FFR were then randomized to PCI or OMT.
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In one way, the OMT initiative is more restricted than the SMP, which did not specify maturities.
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Activation of the OMT is still not inevitable, despite the increase in Spanish and Italian borrowing costs Tuesday.
Using the OMT in postbailout Ireland or Portugal would be a different use of the program than originally intended.
The OMT was designed to be a prebailout instrument, best suited for Spain.
However, the followup to COURAGE, the ISCHEMIA trial, will randomize ischemic patients to PCI or OMT without prior angiography.
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"Our sense is that the OMT works better as a threat, " says Mr Stopford, who recently sold Investec's Spanish bond positions.
In its place comes another catchily named programme: Outright Monetary Transactions (OMT).
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On September 6, the ECB outlined its new bond-purchase plan the Outright Monetary Transactions (OMT), that was discussed in Rate Cut Resistant.
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Mujtaba Rahman, head of research firm Eurasia Group's Europe practice, said Draghi "exhausted" his political capital when he introduced the OMT program in September.
The trial was designed to address the limitations of COURAGE, in which CAD patients as documented by angiography were randomized to PCI or OMT.
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They think the success of the ECB's promise of "Outright Monetary Transactions" (or OMT) will be well demonstrated by it never having to be used.
In fact, since the announcement of the OMT, national banks in peripheral economies have been buying more government bonds than ever, apparently strengthening those links.
The verbal intervention, coupled with the unveiling of an open-ended sovereign bond-buying program (Outright Monetary Transactions, or OMT) pushed skyrocketing yields across the PIIGS down dramatically.
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The OMT program was launched on September 6 at the bank's monthly press conference in Frankfurt, following political pleas for action from Italy and Spain.
According to the company, the DSMB recommendation was based on an increase in the risk of major adverse cardiac events (MACE) in patients randomized to OMT alone.
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The election result has also increased the likelihood that the ECB will be called on to activate its as-yet-untested OMT program to help Spain, Italy or both.
But even an implemented OMT programme is unlikely to push Spanish bond yields much lower, given that eurozone policy makers will want to keep pressure on Madrid.
But predictions for when the country would turn to the eurozone's rescue fund -- triggering the ECB's Outright Monetary Transactions (OMT) bond-buying programme -- have repeatedly proved wrong.
In fact, as we discussed in our last Euro Monetary Watch HERE , we think a deflationary scare awaits the Eurozone unless and until OMT is implemented.
To demand pre-knowledge what conditions would be imposed is outrageous and the by allowing OMT to be an open ended, timeless proposition has allowed Eurozone beggars to be choosers.
The risk is that the credibility and effectiveness of the OMT program are undermined by doubts about the willingness of Spain to accept the conditions and adhere to them.
So today there exists a roadmap towards much more aggressive support by the European Central Bank for governments like Spain struggling to borrow through its planned Outright Monetary Transactions (OMT).
What remains to be seen is whether Mr. Draghi will respond to Mr. Noonan's courting, and spell out that the OMT is open for Ireland and Portugal when their bailouts expire.
Leaked on Wednesday, markets players expected the OMT, which consists of bond purchases by the ECB in the secondary market of short duration, coupled with strict conditionality (preferably under IMF surveillance).
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