10-year German bund yields slip to -0.353%
German bund yields slip and the euro has also pulled back a little as a result, with the ECB delivering the message that they will be stepping up PEPP purchases.
The central bank also added a caveat that they will be more flexible with purchases moving forward, depending on "market conditions" while maintaining the previous rhetoric of potentially using the entire PEPP envelope or "recalibrating" it if necessary.
So far, that is enough to keep the peace in the market and is arguably a step up compared to the verbal threats that they have issued over the past two weeks or so.
There might be some ambiguity with regards to what exactly is "favourable financing conditions" still and what exactly is a "tightening" of those conditions, but perhaps Lagarde may offer some insight later in her press conference at 1330 GMT.
