There's another ECB sources story crossing the wires:
- Internal metrics do not currently show unwarranted fragmentation in any country
- ECB does not expect TIP to be triggered imminently, did not discuss any country today
- Staff will look at complex metrics and alert governing council if they show unwarranted fragmentation
- All countries currently eligible for TIP based on conditions outlined on Thursday
It pains me that this stuff comes out via 'sources' rather than Lagarde herself. Why not just disclose this in the press conference?
Overall though, this is important stuff. On the negative side, it means that spreads can widen further. On the positive side, it means that every country has access to it. Given a slowly improving fiscal situation, I don't see how anyone who is currently onside could go offside, though eurozone governments have an amazing ability to spend money. Energy subsidies could certainly punch a new hole in gov't balance sheets. But is the ECB really going to cut a country off over that?
EUR/USD is a tad lower on this.
