What will the ECB do after March 2022? Currently, ECB buys European bonds and government bonds through two programs: with Pepp (the pandemic program) it buys each month for 70 billion euros, while with App (the residue of the "old" quantitative easing) buys another 20 billion. In March, this being the case, only the 20 billion App program will remain alive: the market is convinced that the ECB will somehow compensate for the closure of the Pepp with something alternative, but ECB president did not give even a vague reassurance when asked specifically, the market has begun to worry. Added to this are other pressures, which have been pushing yields up for some time. First of all, the increase in inflation: Lagarde continues to consider it temporary, but the market fears not and is challenging the ECB on this. This weighs on government bonds around the world, especially those of hyper-indebted countries such as Italy.
