Quick thread on ECB PEPP detailed data with the charts. Overall no major surprises as peripheral countries remained the main beneficiaries of ECB's (smaller) deviations from capital keys. (1/n)
No prize for guessing who benefited most from ECB PEPP purchases.
🇮🇹 Italy was overpurchased by €4.8bn in June-July (2.6% of total)
🇪🇸 Spain second with €1.8bn (1%)
🇩🇪 and 🇫🇷 below capital keys to compensate
(2/n)
Here's the PEPP breakdown of public bonds purchases relative to capital keys. Overall smaller deviations than in the previous two months, focused on the same usual suspects. (3/n)
No major changes in terms of average maturities of PEPP public bonds either. Core countries still with the lowest WAM partly because central banks are likely to hold a higher share of Bills to mitigate scarcity issues. (4/n)
🇬🇷 Greece was overpurchased again in the PEPP as total purchases reached €10bn. After many years of tough love, the ECB is finally stepping in big times to support Greece! (5/n)
Last but not least, the PEPP remains focused on public bonds. Corporate bonds amounted to only 3.4% of total purchases and the ECB sold €544m of Commercial Paper.
Time will tell but for now PEPP is the new public QE to address financial fragmentation and the inflation gap. (6/6)
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