Bond Redemptions in Spain, France and Italy Damp ECB Risk: Chart

(Bloomberg) -- A large amount of bonds coming due in France, Spain and Italy in the next two weeks may be enough to disrupt any sell-off in the market if the European Central Bank announces plans to cut asset purchases more than expected at its meeting on Oct. 26. Those redemptions are likely to be partly reinvested, making it more difficult to short the market, said Mizuho International Plc rates strategist Peter Chatwell. “If there is an adverse reaction to the ECB meeting, we would expect it is difficult to sustain,” he said.