by Calculated Risk on 8/15/2011 09:44:00 PM

• From the Financial Times: ECB buys €22bn in eurozone bonds

The European Central Bank spent €22bn on government bonds last week ... The larger-than-expected display of fire-power highlights the scale of the challenge the central bank faces in keeping official borrowing costs under control for Italy and Spain ...
excerpt with permission

• So far it is working ... here is a graph of the 10 year spread (Italy to Germany) from Bloomberg (currently 270). And for Spain to Germany (267).

• From the NY Times: Debt in Europe Fuels a Bond Debate

President Nicolas Sarkozy of France and Chancellor Angela Merkel of Germany are scheduled to meet in Paris on Tuesday but have vowed to avoid the issue of euro bonds altogether.

It doesn't sound like anything significant will be announced following the meeting tomorrow.

Earlier:
• NAHB Builder Confidence index unchanged in August, Still Depressed
• Residential Remodeling Index at new high in June
• From the NY Fed Empire State Manufacturing Survey indicates contraction
• NY Fed Q2 Report on Household Debt and Credit
• Lawler Forecast: Existing Home Sales may "dip" in July