"As we mentioned earlier, while there were a few things crossing the wires, there didn't appear to be a headline that was clearly responsible for such a sharp move in the market. Some are attributing the move to comments from ECB's Stark, who said the crisis will be under control within 2 years. However, this headline doesn't seem to be overwhelmingly positive enough to cause such a move. Others have discussed a report suggesting IMF official Roumeliotis could be a candidate for the Greek Prime Minister job. Apparantly the thinking there is that an IMF official will have a good relationship with one of the investors in Greece's bailout. Earlier today, former ECB VP Papademos was said to be the lead candidate for the Greek PM job.
While timing isn't exactly correct, the other rumor/news is that:
*EURO PLANS FOR INVESTMENT FUND IN DOCUMENT FOR EUROGROUP TALKS
*EURO `CO-INVESTMENT FUND' WOULD BE SUBSIDIARY OF EFSF: DRAFT
*EURO `CO-INVESTMENT FUND' TO ATTRACT `EXTERNAL CAPITAL SOURCES'
*EURO FUND RISK SHARING ACHIEVED VIA `DIFFERENT CAPITAL LAYERS'
*EURO FUND WOULD BUY SOVEREIGN BONDS ON PRIMARY, SECONDARY MKTS
So as far as I can tell, there is going to be a subsidiary fund within the EFSF to buy bonds that nobody wants and it is going to attract capital by the same unknown mechanism as the EFSF. And the market rallies on this?
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