ECB bond data at top of hour

Keep an eye on the ECB bond data at the top of the hour. The ECB was said to have been a big buyer Thursday and Friday; the market wants to see how big. Spreads dropped more than 80 bp in Spain, for instance, from above 300 bp over German bunds to 220 bp late Friday. We are now at 238 bp.

The ECB has sterilized every bond purchase to date. It would be a major policy shift if they do not do the same today. Euro would weaken dramatically.