MNI China Daily Summary: Wednesday, June 19

MNI BRIEF: Rate Changes Affect Eurozone More Than US Firms-ECB

MNI BRIEF: BOJ May Real Export Index Drops 1.4% M/M

MNI BRIEF: PBOC, MOF To Promote Treasury Trades Progressively

MNI: PBOC Net Injects CNY276 Bln Via OMO Weds; Rates Unchanged

CHINA PBOC CONDUCTS CNY278 BILLION VIA 7-DAY REVERSE REPOS WEDS

EZ/UK Bond Supply Calendar: Spain, France Auction on Thursday

EZ/UK T-Bill Calendar: 1/3/6-Month UKTB Auction on Friday

EZ/UK Bond Supply Calendar: Spain, France Auction on Thursday

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

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Weidmann in favour of market neutrality over green biases (2/2)

ECB
  • However the more controversial study is looking into whether the ECB should abandon its overriding principle of market neutrality (i.e. purchasing in line with issuance across the market with no biases). The argument in favour is that the market does not efficiently price certain green credentials. And so green bonds are underrepresented in the marketplace. The question is should the ECB buy more of these green bonds and less bonds of companies that contribute to climate change. Weidmann argues that market neutrality is key whereas it is thought that ECB President Lagarde is likely to make the counter-argument.
  • Note that with green and sustainable issuance very much in focus right now, the volume of green and sustainable bonds is increasing as a proportion of the market. Indeed, the EU SURE, Germany, France, Netherlands, Belgium, Ireland and Luxembourg all have green or sustainable bonds.
  • Note that we ran a roundup of the outstanding issues a couple of weeks ago, so get in touch if you want us to re-send that across.
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