Economy
ECB, what is the anti-spread shield and how it could work
The Central Bank announced a new anti-fragmentation tool after Italy, Spain and Portugal spreads rose to their highest levels since 2020, hitting 250. From reinvestments from maturing bonds to the Outright Monetary Transactions program, what are the assumptions
–
The Bce announced that he is working on a new anti-spread shield: instructed the technical departments to speed up “the completion of a new one anti-fragmentation tool“to be submitted to the Governing Council
–
In recent days, the premiums requested by investors for holding bonds of Italy, Spain and Portugal compared to the safer German debt (gli spread) have risen to maximum from 2020touching quota 250. After the announcement the spread between BTP and Bund is dropped in the day, settling at 216
–
According to analysts, the only tool that the ECB has so far available is the possibility of channeling reinvestments give her maturing bonds purchased during the pandemic phase towards troubled markets
–
–
