- German Finance Minister Schauble says increasing EFSF is a stupid idea. Some AAA state ratings would be at risk.
- French PM Fillon suggested there will be steps to amplify eruo-area defenses after the German vote.
- Eurogroup’s Juncker said the EU is not working hard enough to fight the crisis. The Troika will return to Athens tomorrow, or the next day
- The German Economy Minister says that leveraging the EFSF is “off the table”. From Bloomberg
- The Fed’s Fisher says policy has yet to show evidence of working. He fears moral hazard with more easing, and doubts the effectiveness of policy options on the table
- Merkel says Germany wants a strong Greece and that Greece is close to meeting the Troika’s conditions.
- Greece’s Papandreou says the country will definitely fulfill obligations
- Merkel is confident that the coalition will give her government its majority on the EFSF vote
- Meridith Whitney slashed earnings estimates for Goldman Sachs and Morgan Stanley
- Greece passes property tax law 155-143
- FT: Split opens over Greek bailout
- S&P 500 sheds large fraction of early gains, closes up 1.1%; European bank shares rise 6.5%.
- US 10-year note yield rises 0.7 bp to 1.97%
- Gold rises $25 to $1650
EUR/USD faded late in the session as a late story in the FT helped cool the Euro-phoria that has broken out in recent sessions. EUR/USD slipped from 1.3669 afternoon highs to close near 1.3580. Bids lie in a 1.3560/80 window now on pullbacks; stops are building below 1.3560 from fresh speculative longs.