Best viewed on a device with a bigger screen...
The ECB did not use its entire PEPP envelope and diverged from the capital key also in the APP.
Reinvestments will be used flexibly to cap spreads; rumours suggest cross-country purchases started.
Our estimates point to a maximum of €10B worth of PEPP reinvestments for BTPs; that’s not enough.
This publication is only available to Eurozone Economic Research (Monitor) subscribers
Pantheon Macroeconomics produce daily publications for U.S., Eurozone, Latin America, UK and Asia, as well as analysis on key data within a few minutes of their release.
btp, ECB, eu, governing council, italy, June, liquidity, March, monetary policy, policy, qe, sovereign bonds, Pantheon Macro, Pantheon Macroeconomics, independent macro research, independent research, ian shepherdson, economic intelligence