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/EGBS: Commerzbank: Markets More Conducive Backdrop For PEPP Adjustment Discussions

ECB

Ahead of today’s ECB decision Commerzbank flag that “focus will be on the ECB balance sheet as Lagarde recently said that PEPP reinvestments will be discussed in the "not-too-distant future". It seems that the ECB PEPP discussion is a function of current market conditions, and very well-behaved spreads and the bullish market backdrop would be a lot more conducive to get the ball rolling, in contrast to the last meeting.”

  • “Unless the ECB were to decide a full stop of reinvestments for early next year, BTPs should not be shocked by prospects of a phasing out of reinvestments during the course of next year.”
MNI London Bureau | +44 0203-865-3809 | anthony.barton@marketnews.com

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