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Peripheries Outperform As No Change To PEPP Reinvestments

EGBS

EGB yields head lower on the ECB decision, with peripheries outperforming as the statement retains existing language re PEPP reinvestments in the October meeting.

  • 10Y Bund yields drop 2.5bp to session low of 2.87%.
  • 10-year BTPs fell 4.7bps on the announcement and now sit at 4.86%. BTP/Bund spreads sit 3.3bps lower today at 199.3bps after the 200bp handle originally provided some support following the decision.
  • Attention turns to the Lagarde press conference fpr any signal that the ECB is eyeing balance sheet runoff policy changes.

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