ECB President Lagarde (Q&A) says there is an abundance of excess liquidity; ECB did not discuss any new tools today

Lagarde's remarks about excess liquidity suggest that the ECB remains cautious about tightening measures, indicating a retention of accommodative policy for now. The lack of discussion on new tools implies no immediate shifts in policy stance which could maintain pressure on the euro and influence yields in fixed income markets. Overall, this indicates a dovish tone that markets will likely interpret as a signal to remain balanced in their positioning between growth prospects and inflation risks.