Market news
21.07.2022, 14:23

ECB: TPI purchases to be focused on public sector securities

The European Central Bank (ECB) recently published additional details regarding its new anti-fragmentation tool titled "the Transmission Protection Instrument (TPI)."

Key takeaways  

"TPI purchases would be focused on public sector securities."

"Purchases under the TPI would be conducted such that they cause no persistent impact on the overall Eurosystem balance sheet and hence on the monetary policy stance."

"TPI buys with a remaining maturity of between one and ten years."

"Purchases of private sector securities could be considered."

"Purchases would be terminated either upon a durable improvement in transmission, or based on an assessment that persistent tensions are due to country fundamentals."

"TPI conditions: Sound and sustainable macroeconomic policies."

Market reaction

The EUR/USD pair is struggling to gain traction and was last seen trading flat on the day near 1.0180.

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