ECB...Debt Crisis Lessoning?

While there remains uncertainty over what the ECB will do, the present increasing belief is that the debt crisis may be lessening with the central bank to buy some of the sovereign debt of Spain and Italy to keep the interest in the two countries from rising. Germany is sending signals that it will go along with bond buying from the ECB, something Germany was completely against until recently. Most likely Germany is coming around due to its economy beginning to contract; whatever the reasons, the change in attitude is taking some of the risk trade into US treasuries away sending interest rates higher. The euro currency held gains even after Germany’s Economy Ministry in Berlin said factory orders dropped 1.7% from May, when they rose 0.7%. Economists projected a 0.8% decline.