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By Reuters Staff
(Corrects date in third paragraph to June 10, not June 1)
PARIS, May 25 (Reuters) - The European Central Bank has plenty of time to map out its exit from its pandemic asset purchase programme, and could be more flexible about its buying after that, ECB policymaker Francois Villeroy de Galhau said on Tuesday.
As the euro zone economy rebounds and vaccination campaigns gain momentum, some hawkish central bankers have suggested the ECB should start contemplating how it will wind down its exceptional asset purchases from the crisis phase of the pandemic.
That has boosted market speculation that the pace of bond buys under the ECB’s Pandemic Emergency Purchase Programme (PEPP) could be discussed as soon as its June 10 meeting.
ECB has ‘ample time’ to plot exit from pandemic asset purchases – Villeroy
The European Central Bank has plenty of time to map out its exit from its pandemic asset purchase program, and could be more flexible about its buying after that, ECB policymaker Francois Villeroy de Galhau said on Tuesday.
As the euro zone economy rebounds and vaccination campaigns gain momentum, some hawkish central bankers have suggested the ECB should start contemplating how it will wind down its exceptional asset purchases from the crisis phase of the pandemic.
That has boosted market speculation that the pace of bond buys under the ECB’s Pandemic Emergency Purchase Programme (PEPP) could be discussed as soon as its June 10 meeting.
By Reuters Staff
2 Min Read
FILE PHOTO: European Central Bank President Christine Lagarde addresses European lawmakers during a plenary session at the European Parliament in Brussels, Belgium February 8, 2021. Olivier Matthys/Pool via REUTERS/File Photo
LISBON (Reuters) -It is still too early for the European Central Bank to discuss winding down its 1.85 trillion euro emergency bond purchase scheme, ECB President Christine Lagarde said on Friday, less than two weeks ahead of a crucial policy meeting.
Lagarde’s comments are likely to be aimed at fighting market speculation that ECB policymakers will decide to, or least discuss, slowing the pace of the ECB’s Pandemic Emergency Purchase Programme (PEPP) when they meet on June 10. [GVD/EUR]
Traders Magazine
By Jonathan Rick, Director of Research, Tradeweb
The European Union’s stepped-up role as a central funding source for member states as they recover from the coronavirus pandemic positions it in a unique spot among supranational borrowers. Issuance of Support to mitigate Unemployment Risks in an Emergency (SURE) bonds over the past year and a further €800bn of potential new debt have transformed the borrower into a market bellwether, with liquidity and other market metrics commensurate with other leading European government and supranational names.
As it further standardizes its approach to funding – announcing earlier this month a strategy to issue around €150bn per year of bills, bonds and notes through 2026 as part of its Next Generation EU program – it will likely continue to bridge the gap between a typical supranational issuer and a government issuer of the confederation, with liquid securities across the yield curve. This change in market per