ECB limit removal cranks in spreads
The European Central Bank announced on Wednesday night that it would be removing the self-imposed limits on its holdings of sovereign debt for its €750bn pandemic emergency purchase programme. The news drove an impressive reduction in the spread to Bunds on government bonds from the eurozone periphery.
The ECB’s decision to remove the limits on its Pandemic Emergency Purchase Programme (Pepp) met with relief.Italy’s spread to Bunds contracted 14bp, as did Spain’s. Greece’s has fallen by 75bp. It will be a boon for Europe's public sector borrowers, many of whom are facing increased funding needs to ...
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