At its June 4 meeting, the European Central Bank (ECB) increased its Pandemic Emergency Purchase Programme (PEPP) by €600 billion, bringing the total to €1.35 trillion. Consensus expectations were for a significantly smaller programme, showing that yet again, when it comes to large events the ECB always over-delivers. The ECB also committed to maintaining the purchases until June 2021, and it will continue to reinvest its coupon and maturing principal payments until 2022. The ECB noted that its purchases will happen across asset classes and across maturities. In layman’s terms, the ECB is saying that it will buy whatever it…

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