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Topic

PEPP

Euro zone bond rally ends, hit by UK, US sell-off

Euro zone bond rally ends, hit by UK, US sell-off

Published 27 May, 2021 07:09pm
  • Euro area yields had risen sharply earlier in the month, with Germany's 10-year yield nearing positive territory last week, driven by speculation that a stronger economic outlook driven by speedier vaccinations in the bloc could prompt the ECB to slow the PEPP purchases at its June 10 meeting.
  • The extent to which Weidmann would deviate from recent dovish signals by ECB policymakers was being watched particularly closely as he is among the most hawkish at the bank.
ECB hawks lay off taper talk at short, calm meeting

ECB hawks lay off taper talk at short, calm meeting

Updated 22 Apr, 2021 07:57pm
  • The ECB decided to continue running its Pandemic Emergency Purchase Programme (PEPP) at its current clip this quarter to keep borrowing costs stable for governments, companies and households.
  • While that decision was expected, analysts were awaiting hints about the pace of PEPP after June, after governors including the Netherlands' Klaas Knot raised the prospect of dialling it down.
ECB sees scope for cutting bonds buys after second-quarter surge

ECB sees scope for cutting bonds buys after second-quarter surge

Published 08 Apr, 2021 06:38pm
  • Worried that rising yields would derail an eventual recovery, policymakers in March decided to "significantly" increase bond purchases and undo some of the rise in borrowing costs, which was deemed a reflection of a global repricing rather than improved economic prospects.
  • "It was underlined that the flexibility embodied in the PEPP was symmetric, implying that the purchase pace could be increased and decreased according to market conditions," the ECB said.
ECB blames redemptions as emergency bond buys slow

ECB blames redemptions as emergency bond buys slow

Published 08 Mar, 2021 08:13pm
  • The ECB bought 11.9 billion euros worth of bonds under its Pandemic Emergency Purchase Programme (PEPP) in the five days to March 5, slightly less than in the previous week.
  • An ECB spokesman said the net purchases were affected by "seasonality factors", particularly large redemptions, which "temporarily delayed" an increase in the ECB's bond pile.
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