Reuters reports that ECB permanent board member Gonzalez-Paramo says that the central bank thinks it rate cut is working, for the moment. Reading between the lines, one can infer he’s leaving the door wide open for further rate cuts.
In terms of the money markets, they continue to ease up today as US T-Bill rates revert back towardthe Fed funds rate where they belong. Last week, they were well below 1% and close to zero for the one-month bill. That security now yields a whopping 58 bp.
