The ECB sticks to the narrative that they have done enough for now
- PEPP is the central pillar of ECB crisis response to the virus outbreak
- OMT is part of our toolbox
- Doesn't want to speculate about the use of OMT
- Most urgent thing is coordinated fiscal policy response
I don't think this comes as too much of a surprise and so far at least, the PEPP announcement has helped to relieve some pressure on the bond market over the past few weeks.
At the same time, it could also be one of the reasons why lawmakers are getting no sense of urgency to step in with their own bazooka to try and provide added economic relief.
