- ECB said to consider two-year loans for banks
- ECB said to look at allowing more uncovered bonds as collateral
- Interest rate cut is expected, only size is up for discussion
No big surprises there. Long-term refis have been rumored to be extended up to 3-years in the recent days, so 2-year loans would be a mild disappointment.
EUR/USD popped to 1.3400 for a second before easing back to 1.3375. Only real surprise tomorrow would be a cut of greater than 25 bp to the main refinancing rate.
