Thank you sir, may I have another? That’s the jist of comments from Spanish finmin Solbes. He sees room for further rate cuts after the ECB trimmed rates to 2% on Thursday. Trichet keeps trying to damp down antcipation of “very low interest rates” (along the lines of the Fed’s 0.0-0.25%) Fed funds target.
Next up for the market is TIC data which measures foreign capital flows in and out of the US. Last month showed a pronounced shift from long-term assets to short-term products like T-bills.
