Spain 5-y Bond Auction down to 3.572% vs 4.123%

TD Securities analysts believe the ECB has seen enough to increase its dovishness, “but not enough to cut yet (although we do put odds of a refi rate cut at 30-40%, which is more than is priced into the market)”. TD Securities analysts expect today's statement to include downgrades to growth both this year and next and inflation this year could be flat or slightly lower, but the key 2014 inflation forecast will likely be little changed.