Jamie mentioned this over the weekend, but in case you missed it, there is a technical explanation behind the surge in the ECBs emergency borrowing facility. Anglo Irish Bank and the Irish Nationwide building society are selling their assets this week but have borrowed heavily from the ECB in recent times and are now forced to switch from the existing week-long loans to overnight loans in order to ensure a quick sale. The Irish Times reports in full.
This news will probably encourage speculative EUR-shorts to cover.
