More confirmation that Spain is in no hurry to pull the financial rip cord on a full-fledged bailout has sent yields on peripheral debt higher this morning.

We’ve long held that the market would lose patience with Spain if it did not seek aid preemptively and that waiting until the last minute will dilute the impact of the aid program. The market seems to agree.

In 15 minutes we get our monthly update from Mario Draghi.The market is keenly attuned to signals that the ECB could cut its official rates further in the months ahead as core European economies move closer to recession.

If Draghi back-tracks from yesterday’s comments on Germany being dragged down along with the rest of euro area, a very unlikely event, the euro could see a modest short-covering rally.