Record-high inflation in the eurozone is likely to put an end to quantitative easing in the region for the foreseeable future. ‘Tighter’ financing conditions to tackle inflation could trigger spreads to widen between Germany’s sovereign bond yields and those of countries such as Italy and Spain. But unless an exogenous shock unleashes a major market disruption, analysts believe the European Central Bank is unlikely to reactivate its conventional asset purchase programme (APP). If reinvestments