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ECB's Stournaras: Eurozone economy still fragile, no risk of high inflation era


5/25/2021 8:21:13 AM GMT
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By Dhwani Mehta
Commenting on the Eurozoneeconomic outlook, the European Central Bank (ECB) policymaker Yannis Stournaras said that the “economy is still fragile” while adding that “there is no risk of high inflation era.”
Additional comments
“Too early to shift from PEPP to APP.”
“Back greening of monetary policy portfolios.”
Market reaction
EUR/USD is off the four-month highs at 1.2263, currently trading around 1.2245, still up 0.26% on the day. Upbeat German data and US dollar weakness underpin the major.
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Europe's Risky Bonds Tempt Traders as ECB Signals No Taper Yet


Europe’s Risky Bonds Tempt Traders as ECB Signals No Taper Yet
May 23 2021, 11:20 AM
May 23 2021, 9:30 AM
May 23 2021, 11:20 AM
(Bloomberg) A battle is raging in Europe’s riskiest government-bond markets between fear that central bank support is waning and desire to snap up some of the region’s most lucrative assets.
(Bloomberg) A battle is raging in Europe’s riskiest government-bond markets between fear that central bank support is waning and desire to snap up some of the region’s most lucrative assets.
Nowhere is the tension more evident than in Italy’s sovereign debt, where the longest run of weekly declines for the nation’s 10-year notes since 2018 was followed Friday by the most explosive two-day rally since mid-March. ....

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ECB's Lagarde says too early to discuss life after emergency support


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] ....

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ECB's Lagarde: Closely monitoring rise in yields

Christine Lagarde, President of the Europen Central Bank (ECB), said on Friday that they are closely monitoring the rise in yields, as reported by Reu ....

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