Comments by ECB chief economist, Philip Lane
- We will adjust PEPP composition as much as necessary, for as long as needed
- Non-fundamental volatility in spreads impairs the smooth transmission of policy
- It is a basic task for the central bank to counter such destabilising forces
This just reaffirms the same message that they communicated from the policy meeting yesterday. As for the yields spread itself, the bond market wasn't too convinced by the ECB messaging as 10-year Italy and German yields spread remains at over 230 bps:
