• Today’s ECB preview is divided in two parts. In the first part we briefly discuss the economic and pandemic situation in the Eurozone before moving to the second part: the meeting itself. We mostly discuss pandemic bond buying as other policy tools are not in play at this point. In a nutshell regarding the economy and pandemic, the light at the end of the tunnel is brighter for sure. Too bad that the tunnel happens to be longer than feared. Regarding the bond market turmoil, we think the ECB will continue to make half-hearted attempts at controlling yields. It will be a mix of verbal interventions and pulling forward pandemic bond purchases. However, the ECB will remain very much on track to undershoot its purchase commitments.

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