• Draghi: ECB bond buys would not breach rules
  • Schaeuble: I’m ‘sure’ constitutional court will approve ESM
  • Andalusia is fourth Spanish region to ask for aid
  • Nick Clegg says UK to bring forward growth measures
  • EU’s Rehn: Eurobonds would require treaty change
  • WSJ’s Hilsenrath: Fed still lukewarm about cutting reserve rates
  • Italian 2yr yields fall to lowest since April
  • Italy budget deficit declines
  • Gold gains $2 to highest since March
  • ECB bought no bonds last week
  • JPY leads, AUD and NZD lag
  • US markets closed for Labor Day

Quiet session that was punctuated by the Draghi headlines, which heightened expectations that the ECB is ready to act. The bond market rushed to buy short-term periphery debt and European stocks rallied.

The euro munched through offers up to 1.26, touching 1.2611 and then fading back to 1.2593.