ECB's De Guindos: ECB committed to addressing bond-market fragmentation
De Guindos on Bloomberg TV
- ECB hasn't discussed abolishing capital key rule
- ECB is flexible on timing of purchases and type of asset
'Fragmentation' is a fancy way of saying that Italy has to pay more to borrow than Germany. The idea that borrowing rates for a deficit-ridden, black-hole-of-growth like Italy should be the same as Germany -- or even close -- is utterly ridiculous, but not as ridiculous as the idea that a central bank should close it.
In any case, the euro is going to have another look at 1.1000/20 and that will determine what happens next. It's all about the technicals now.