Northern Trust Asset Management Monthly Market Commentary for April 2021
Eurozone Market Update
As anticipated, the ECB Governing Council made no changes to its monetary policy. The ECB reiterated that purchases under its Pandemic Emergency Purchasing Programme (PEPP) are going to be significantly higher over the quarter relative to the first months of the year, in order to maintain favourable financing conditions. Since that announcement, March PEPP net purchases were €74bn, up from approximately €60bn for January and February, providing supporting evidence to their messaging.
The money market reaction was fairly muted, with a 10bps hike from the ECB that had been priced in from Q1 2024 being brought forward to Q4 2023.