The ECB Is Said To Expand Its PEPP Program Amidst German Grumblings

Goldman Sachs issued a report that most probably the ECB will expand by EU400 billion its Pandemic Emergency Purchase Program (PEPP), extending it through the end of 2021, and including purchases of high-yield bonds. Eurozone core inflation at 0.2% in September and fears of lockdowns in Spain and France are given as motivation for the decision (Citigroup analysts are already advising to sell Spanish bonds).