DislikedHow was the conference even remotely hawkish? Rating suspended for Portugal, no commitment on rate rise. It was all bearish. As Monroe put it, by the time everything happened no counterparty to take on the risk.
Seems 4300 has some fight left for now.Ignored
- Indication of upside risks to inflation which are being monitored very closely says to me there's another rate hike in Q4
- Ratings suspension regarding collateral of Portugal while not good in practice means, and I quote Jamie Coleman [quote]A ham sandwich is now suitable collateral if submitted by a Portuguese bank[/quote], which in the short term would allow the banks access to ECB funding even if there bonds go to junk status like Greece. Given the jitters about Portugal recently, I figured the market would take this well.
- Not part of the press conference, but two ratings agencies confirmed Ireland was in stable standing for now to assuage rumors that it was on shaky grounds and you have a nice risk-on move