European Central Bank President Jean- Claude Trichet may today play the interest-rate card and signal to European governments that the euro regionâs debt crisis is theirs to solve. Two days after German Finance Minister Wolfgang Schaeuble opened a rift with the ECB over how to fix Greeceâs debt crisis, Trichet is likely to signal that the ECB is ready to raise interest rates for a second time in three months in July, a Bloomberg News survey showed. The central bank today will keep its benchmark at 1.25 percent, a separate survey showed. http://www.bloomberg.com/news/2011-...-germany-risks-split-on-new-greek-rescue.html Strong vigilance is needed - as usual...
the market has fully priced and discounted a july hike of 25bp. the only 2 upsets are: (1) they hike today. (2) they remove any chance of a july rate hike. in terms of volatility in a supposed rate rising cycle this is the quietest i have ever seen. the ever efficient liquidity killing algo system marches on. yawn yawn.