ECB remaining ‘vigilant’

It’s not quite as dramatic as the Friday statement by the Fed’s Jay Powell and last night’s similar action from the BOJ’s Kuroda, but ECB Vice President Luis de Guindos says Europe’s central bank “stands ready” to act as necessary to combat any virus-linked slowdown.

It prompts only one question: “Is Lagarde on vacation?”

A quick check on rates finds them falling throughout the West, except for Italy. The 10-year yield in Germany is now -0.656% (not a typo), in Spain is 0.28% (not a typo), and in the U.K. 0.40%. Italian 10-year yields are up another 5.4 basis points to 1.175%. In the U.S., the 10-year yield is threatening to fall below 1% for the first time ever, currently at 1.06%.

There’s been plenty of chatter over the weekend about a three-way coordinated central bank move early this week. So far, it’s only talk.

https://seekingalpha.com/news/3547364-ecb-remaining-vigilant-guindos