Talk of German pressure for an ECB exit strategy

There are rumors that a think tank says that Germany, or the Bundesbank, is pushing the ECB to formulate an exit plan.

The rumor appears to be getting some traction with Italian and Spanish yields moving substantially higher on fears that extraordinary support will be removed. It seems a bit overdone because it’s prudence to put a plan in place, whether it’s activated or not. The euro isn’t reacting but the bias would be for EUR/USD to move higher on this.

Update: the talk is that the ECB (or ECB members) are telling banks they could drain a portion of the excess liquidity or the LTRO later this year, if conditions improve.