The Italian bond market likes the ECB news. Ten-year BTP yields were creeping higher on unease ahead of the announcement and touched 1.595% but have since plunged to just below 1.40%. The spread over German 10s has fallen to 174 bps, which is the tightest since March.
That's a great sign for European equity markets and Italian stocks in particularly. That will also filter in the euro on investment flows.
The trade certainly isn't over for today with Lagarde set to speak at the bottom of the hour.
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