Little Market Reaction From Schnabel QT Speech

Little discernable market impact from the Schnabel speech on ECB balance sheet policy released at 1700CET (text here), with Bunds just a few ticks higher and the EUR steady.

• Schnabel had already made a hawkish "appearance" earlier in the session via a BBG sources piece that pushed rates a little higher earlier in the session.
• The speech itself is a survey of global excess reserve regimes, and explores why the upcoming reduction in excess reserves amid QT "matters for the conduct of monetary policy" - but ultimately it's a long-term outlook and not necessarily one that will shift the market needle in the near-term.
• The conclusion is that "in the steady state, the size of our balance sheet should only be as large as necessary to ensure sufficient liquidity provision and effectively steer short-term interest rates towards levels that are consistent with price stability over the medium term."