ECB sets up new repo facility to provide liquidity to non-euro area central banks

ECB introduces a Eurosystem repo facility for central banks (EUREP)

This is said to be a precautionary backstop to address pandemic-related euro liquidity needs outside of the euro area and will allow other central banks to borrow euro against euro-denominated debt issued. The facility will run through until June 2021.

The full release can be found here.

The timing of this is a little odd considering that market conditions now are much more stable than the early days of the virus crisis but hey, more liquidity and efforts by central banks to keep the wheel spinning is welcome news these days.

European equities have largely turned around the earlier losses of around 1% with the DAX now climbing back up to post 0.3% gains after the opening hour of trade.