Comments by ECB vice president, Luis de Guindos
- Our priority is to maintain favourable financing conditions
- Recent rise in yields is partly due to higher inflation expectations in the US
- We will have to see if the increase in nominal yields will have negative impact on financing conditions
- If so, we are open to recalibrate our programme
- That includes the PEPP envelope, if necessary
- We have the flexibility that is needed in order to react
- Full interview
There are other token remarks in the interview but this is perhaps the more important ones pertaining to the market right now. Again, verbal intervention hasn't quite worked and the ECB is sticking with the PEPP threat for the time being.
Yesterday's data wasn't too convincing, although the ECB had come out to clarify that the low figure is due to much higher redemptions. We'll see how things go moving forward and whether European bond traders will look past that or not.
