(Bloomberg) — After what seemed like an eternal wait, we
now have the ECB statement.
“Based on this assessment, the Governing Council decided
that it will apply flexibility in reinvesting redemptions coming
due in the PEPP portfolio, with a view to preserving the
functioning of the monetary policy transmission mechanism, a
precondition for the ECB to be able to deliver on its price
stability mandate. In addition, the Governing Council decided to
mandate the relevant Eurosystem Committees together with the ECB
services to accelerate the completion of the design of a new
anti-fragmentation instrument for consideration by the Governing
Council.”
On a quick first read, it seems long on words and short on
action. This may re-kindle the earlier dour mood on peripheral
securities.