In case you were wondering why the market has recovered post-FOMC Release.

http://www.businessinsider.com/report-me....

...so why is it now selling off again?

Hmmmm....right after FOMC release...interesting

Merkel Pushes Back on Direct Bond Purchasing to Overcome Crisis


By Patrick Donahue
June 20 (Bloomberg) -- German Chancellor Angela Merkel
declined to commit to direct sovereign debt purchases through
the euro-area bailout fund, pushing back on calls by euro-region
leaders who backed the measure as a way to ease the crisis.
Such a move, while legally possible, “is not up for
debate” at present, Merkel said today in Berlin. French
President Francois Hollande yesterday championed the idea of
using the European Stability Mechanism to purchase indebted
countries’ bonds as a way to counter rising yields. Just back
from the Group of 20 summit in Los Cabos, Mexico, Merkel said:
“I haven’t heard about such things.”
“There is no concrete planning that I know about, but
there is the possibility of purchasing sovereign bonds on the
secondary market,” Merkel told reporters today in Berlin after
meeting with Dutch Prime Minister Mark Rutte. “But this is a
purely theoretical statement about the legal situation.”
Hollande prodded German leaders to use the European Union’s
permanent rescue fund to buy debt from countries such as Italy
that have taken steps to revamp their economies.
“Italy has launched an idea that deserved to be looked
at,” Hollande said yesterday after the G-20 summit. The
proposal is for “virtuous countries like Italy,” which have
improved their public finances, to “be able to get funding for
their debt” at better rates than countries that didn’t make the
same efforts.
“We’re looking at the ways and means” to use the ESM, the
17-country euro region’s bailout fund, Hollande said.
Hollande expects to discuss the bond-buying proposal with
his German, Spanish and Italian counterparts when they meet in
Rome on June 22. There is no decision made yet on the proposal,
he said.
Merkel said that she expects a request from Spain in the
coming days for aid for its banks. Spain may ask for as much as
100 billion euros ($127 billion).

love this comment from Zerohedge

This is just getting ridiculous:

MERKEL SAYS BOND PURCHASING BY BAILOUT FUND A POSSIBILITY
Uhm... that whole point of the bailout fund (ESM/EFSF) is to BUY BONDS. Basically Merkel just confirmed that the whole point of the ESM, which by the way still does not exist, and whose sole purpose is to buy bonds... is to buy bonds. You can't make this up. Yes they will subordinate existing bondholders in the case of ESM, and in the case of EFSF Finland and soon Germany will demand collateral via negative pledges (as in the case of Spain - or did the market forget all about that already), but apparently that is now merely an irrelevant detail. And the EURUSD ramps on this, once again proving that nobody has any idea what is going on in the market but flashing red healines = usually good.

bilge

Apparently the world hangs on a headline

Right, Early_retirement. I imagine that the purpose of this news release was to induce a similar effect JPM's stress-test release had on the market after the FOMC Release on March 13.