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MNI BRIEF: PEPP Reinvestment Bonds Buys To Begin From July 1

(MNI) Sintra

The ECB could begin using PEPP reinvestments to buy bonds of member states at risk of market fragmentation as soon as this week, president Christine Lagarde said Tuesday.

"[W]e will use flexibility in reinvesting redemptions coming due under the pandemic emergency purchase programme (PEPP) to preserve the functioning of the monetary policy transmission mechanism. In other words, those redemptions can, as appropriate, be invested within the Eurosystem in bond markets of jurisdictions where orderly transmission is at risk. We have decided to apply this flexibility in reinvesting redemptions coming due in the PEPP portfolio as of 1 July."

MNI London Bureau | +44 20 3983 7894 |
MNI London Bureau | +44 20 3983 7894 |

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