MNI BRIEF: BOE Rate Cut Closer But Still Some Way Off - Pill

MNI China Daily Summary: Tuesday, April 23

RPT-MNI INTERVIEW: Kaplan Says Loose Fiscal Is Holding Up Cut

MNI BRIEF: Hungary Central Bank Cuts To 7.75% As Expected

MNI: PBOC Conducts CNY2 Bln Via OMO Tues; Liquidity Unchanged

MNI: PBOC Sets Yuan Parity Higher At 7.1059 Tues; -5.03% Y/Y

MNI: UK JAN-MAR MEDIAN PAY AWARDS +4.8% :XpertHR/Brightmine

Brightmine (XpertHR): Pay Deals Fall to 4.8%; Expected 5% for 2024 Overall

US Treasury Auction Calendar

RPT-MNI: Canada Sticks To Fiscal Anchors, Spends Chunk Of Windfall

MNI BRIEF: Poilievre Calls QE 'Scam' And Would Limit BOC Remit

MNI: Growth Drag From Net Zero Carbon Goal Can Be Offset-OECD

© 1982-2023 MNI. All rights reserved.
Terms | Privacy
Log Out
Free Trial

Stournaras expects ECB to continue to buy GGBs after PEPP

ECB
  • Bank of Greece Governor Stournaras said in an interview with Politico (available here) that is is his "expectation" that the ECB will to continue to buy Greek government bonds (GGBs) after PEPP ends, by including GGBs in the APP.
  • There has been nothing official regarding this to date, the only investment-grade debt eligible for APP (the highest Greece is rated by any of the four ratings agencies the ECB recognises is BB so two notches off BBB-).
  • These are the most explicit indications that Greece will be included in the APP, but as they come from the Bank of Greece Governor they need to be taken with a pinch of salt.
  • After a period of trading at a tighter spread to Bunds than BTPs (capitalised on by the PDMA as they issued in early September), Greek spreads to 10-year Bunds widened to over 120bps but have since tightened back to around 112bps, albeit wider than BTPs.
  • Stournaras' comments about wider ECB policy were on the dovish end of the spectrum as he said that ""It would be really arrogant on our part to declare victory over the pandemic right now... That's why it is too early to draw conclusions about the extension or not of the PEPP beyond March 2022."
  • He also said that "The APP, for instance, may need to be recalibrated... To avoid any cliff effect, the APP would benefit from higher purchase volumes and from some important flexibility features of the PEPP. Our experience with the PEPP has shown that by being flexible... we've achieved significant results with regard to inflation and output at lower purchase volumes."
HomepageBulletMarketsFixed Income BulletsForeign Exchange Bullets

To read the full story

Close

Why MNI

MNI is the leading provider

of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.

Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.