• Turning to today’s special, a few words about press reports and analyst coverage of the ECB tilting QE reinvestments towards the periphery, specifically Italy. Call it a ‘bailout’ of Italy of sorts. Recall that the ECB recently activated its first line of defense against Italy’s Bund spread widening to levels the ECB considers to be fundamentally unjustified (their word, not ours). That first line of defense is tilting reinvestments of maturing non-Italian public sector debt to Italian public debt.

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