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Periphery Spreads Tighten, EUR Boosted On ECB Crisis Tool Report

ECB

10Y BTP spreads fall 4+bp on a Bloomberg sources story saying that the ECB "is working on a crisis tool to deploy in the event of a blowout in the bond yields of weaker euro-zone economies".

  • BTP spreads pared most of the session's cheapening vs Bunds, but remain slightly wider on the day (see chart below).
  • Eurozone equities have bounced, and the Euro has erased intraday losses vs USD.

BTP/Bund Spread, bpSource: BBG

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