• The ECB moved to buy Italian and Spanish bonds today in an effort to stem a sovereign bond rout. The yield for the Italian 10 yr dipped below 7% on the move. Debate continues on the appropriate level of intervention for the bank. From Reuters News.
• Italy’s Monti announced his new government today. The Prime Minister-designate is under pressure to show that his cabinet can win legislative support for the tax hikes and austerity measures necessary to stop spiraling interest rates there. From The Wall Street Journal.
• The Bank of England may be signaling more quantitative easing as governor Mervyn King said that inflation will most likely be below target for the next couple of years. The central bank’s inflation forecast calls for a rate far below its targeted 2%. From the Financial Times.
• FED officials still remain split on the need for more easing. Public comments show the difficulty Bernanke has in promoting further stimulus. From Bloomberg News.
• Citigroup is planning further layoffs totaling 3000 employees. About a third of those are said to be coming from investment banking and trading. From Bloomberg News.