ECB: today emergency meeting on market conditions

The ECB will hold an emergency meeting today to discuss current market conditions.

The news, anticipated by Corriere della Sera, was confirmed by the central institute.

Last night after a jump in the spreads and yields of government bonds, especially Italian ones, Isabel Schnabel, a member of the executive committee of the ECB, said that the bank will not tolerate "changes in financial conditions that go beyond fundamentals and threaten the transmission of the monetary policy " 

The governors of the ECB will be invited to sign the decision to use the reinvestments of the Pepp pandemic program in response to the spread deflagration.

Bloomberg writes it citing sources close to the dossier.

The meeting, convened by videoconference for 11 this morning, should last about two hours and focus on how to react to the surge in BTP returns, according to the sources of the American agency.

The same sources declare that they do not know if other, more targeted measures are on the table.

Based on data at the end of May, the ECB had purchased over 1,700 billion of debt with the Pepp.

The program, launched in March 2020, was closed at the end of June but with the possibility, until 2024, to buy back new bonds with the capital repaid from those already purchased, which gradually expire.

For the

Italy, some estimates indicate the potential for purchases of 200 billion, but critical voices on the effectiveness of such a measure note that, given the pace of repayments, there is a risk of not being able to buy more than three billion Italian securities per month.

One hypothesis under consideration would be to be able to deviate from the general criteria for the distribution of purchases of national debts, which would make it possible to buy, for example, Italian BTPs with the capital repaid by the German Bunds.

However, such a hypothesis must face legal obstacles: it would constitute the monetary financing of the state budget - expressly prohibited by the treaties and by the ECB statute - and would risk facing new lawsuits.

given the pace of repayments, there is a risk of not being able to buy more than three billion Italian securities per month.

One hypothesis under consideration would be to be able to deviate from the general criteria for the distribution of purchases of national debts, which would make it possible to buy, for example, Italian BTPs with the capital repaid by the German Bunds.

However, such a hypothesis must face legal obstacles: it would constitute the monetary financing of the state budget - expressly prohibited by the treaties and by the ECB statute - and would risk facing new lawsuits.

given the pace of repayments, there is a risk of not being able to buy more than three billion Italian securities per month.

One hypothesis under consideration would be to be able to deviate from the general criteria for the distribution of purchases of national debts, which would make it possible to buy, for example, Italian BTPs with the capital repaid by the German Bunds.

However, such a hypothesis must face legal obstacles: it would constitute the monetary financing of the state budget - expressly prohibited by the treaties and by the ECB statute - and would risk facing new lawsuits.

for example, Italian BTPs with the capital repaid by German Bunds.

However, such a hypothesis must face legal obstacles: it would constitute the monetary financing of the state budget - expressly prohibited by the treaties and by the ECB statute - and would risk facing new lawsuits.

for example, Italian BTPs with the capital repaid by German Bunds.

However, such a hypothesis must face legal obstacles: it would constitute the monetary financing of the state budget - expressly prohibited by the treaties and by the ECB statute - and would risk facing new lawsuits.