Executive Board member of the ECB speaking at an event in Paris 3 April
- at the same time, it is no panacea.
- our securities lending facilities are generally only available to banks. That means that non-bank investors that also have a strong demand for short-term German government bonds are not able to borrow these bonds directly from the Eurosystem
- so far we see no evidence that the current constellation of interest rates bears risks for the smooth functioning of markets
- governing council will continue to carefully monitor these developments
"To the extent that our asset purchases have contributed to this development, the reduction of our monthly purchase pace from €80 billion to €60 billion as of today will provide some relief. At the same time, increasing liquidity in the hands of investors without access to the deposit facility will continue creating demand for safe assets.
For the time being, these factors are therefore likely to continue exerting a certain degree of downward pressure on short-term bond yields."
Full report here
EURUSD still making its mind up at 1.0670 as are EURGBP 0.8507 and EURJPY 118.95
