Italian 2Y Yields Drop Below 1% - Record Low

Hoosier's note: ECB is highly likely to do another round of LTRO (Long-Term Refinancing Operation) or OMT (Outright Monetary Transactions) given that the just reported inflation number is below expectation (see story: Surprise drop in euro zone inflation shows deflation risk).

I remain bearish on EUR/USD and I maintain the 1.28 target, and one guru, i.e., Blackstone's Byron Wien, thinks EUR/USD will go even lower to 1.25 (see predictions #3 in his Predictions for Ten Surprises for 2014).