With Draghi at the helm, the ECB stepped up its BTP buying today, driving the yield on the 10-year from intraday highs of 6.35% to 6.21%, where we trade late in the US session.
The ECB has been pretty low-key in its bond buying of late but I suspect we will see a big spike in the numbers when they are released next week.
The ECB seems to be trying to avoid additional margin requirements if the spread between BTS and bunds rise to 450 bp.
We are at 445 bp now.
