• As mentioned in recent comments, we have been skeptical of the ECB significantly stepping up bond purchases to counter a rise in nominal and real bond yields. After the December Governing Council meeting we warned that the ECB wants to weasel out of its purchase commitments under the pandemic bond buying program, or PEPP. At the January meeting, the ECB walking back on its purchase commitment of 1,850 billion euros in pandemic bond purchases was formalized. Recall this language from the Governing Council statement:

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