- Hints are augmenting that politicians are open to a re-profiling of Greek debt while still excluding a larger-scale restructuring. Together with yesterday’s Merkel guarantee last night’s Eurogroup meeting should add to modest spread tightening with Spain likely trailing behind in the run-up to this week’s auctions.
- Macro data wise Germany’s ZEW release harbours the risk of a downward surprise. In the UK an uptick to today’s CPI could question the market’s sanguine view of the BoE. US industrial production could see a more subdued expansion.
- Minor net-outflows in today’s ECB weekly tender operation should not surprise given current high excess liquidity provision levels. We still look for EONIA fixings to decline in the latter half of the reserve period.
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http://www.easyforexnews.net/uploads/2011/05/ES_0517e.pdf
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