And the jawboning begins:
As Europe’s banking system collapses, ECB is resorting to over-promising more of the same and as ECB Governing Council member Olli Rehn said, the ECB “will announce a package of stimulus measures at its next policy meeting in September that should overshoot investors’ expectations.” More from Bloomberg:
“It’s important that we come up with a significant and impactful policy package in September,” ECB Governing Council member Olli Rehn (governor of Finland’s central bank) says in interview with Wall Street Journal.
“When you’re working with financial markets, it’s often better to overshoot than undershoot, and better to have a very strong package of policy measures than to tinker”
The euro plunged.
And Italian yields tumbled…
As the 10Y Bund yields tumbled to fresh session lows…
… in the last round of the global race to the bottom, where if the Fed eases, everyone else has to ease even more.