Home Business Soaring European bond yields can’t stand the European Central Bank’s plan to limit bond spreads – Teller Report Teller Report

Soaring European bond yields can’t stand the European Central Bank’s plan to limit bond spreads – Teller Report Teller Report

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Soaring European bond yields can’t stand the European Central Bank’s plan to limit bond spreads – Teller Report Teller Report


European bond yields soar as ECB plans to limit bond spreads

Wall Street News

faceEURThe recent avalanche of regional government bonds and the soaring yields have made the ECB unable to sit still.

The media quoted people familiar with the matter as saying that at a meeting on Thursday, June 26, local time, European Central Bank President Christine Lagarde told the finance ministers of euro zone countries that if the borrowing cost of weaker countries rises too high or too fast, Europe will lose money. The central bank will launch new crisis-fighting tools. If bond spreads widen beyond a certain threshold, or if market volatility exceeds a certain pace, it could trigger the ECB to use new tools.

Lagarde said the new mechanism studied by ECB officials was intended to avoid unreasonable market volatility that would put pressure on euro zone countries. She did not say whether the limitations of the trigger tool would be made public.

Risk Warning and Disclaimer

Market risk, the investment need to be cautious. This article does not constitute personal investment advice and does not take into account the particular investment objectives, financial situation or needs of individual users. Users should consider whether any opinions, views or conclusions contained herein are appropriate to their particular circumstances. Invest accordingly at your own risk.

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Responsible editor: Guo Jian

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