ECB to hold ad hoc governing council meeting today to discuss current market conditions

  • ECB calls for an emergency meeting

This likely isn't so much so related to rate hikes, as that is planned for the July meeting already. Instead, this is surely going to relate to the selloff in European bonds - especially the peripheries - since last week.

The ECB failed to do much to address fragmentation risks and that has seen Italian bond yields blow up, with spreads widening as the market is looking to challenge the central bank amid the potential for another debt crisis.

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