HYM
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Europe: Urgent or Not?
The ECB's Draghi expressed an appreciation for the urgency facing the euro area, but he seems more isolated than he did last week when Merkel and Hollande reiterated their willingness to do what was necessary. Even though the euro fell more than a 1.5 cents from its pre-weekend high just below $1.24, Spanish bond yields have continued to retreat. The 10-year benchmark is now about 100 bp below the level seen early last week and the 2-year yield is off about 200 bp. The market is pricing in a resumption of the ECB sovereign bond purchases (SMP). Yet in the past purchases by the ECB did not seem to have much lasting ... (full story)