Economics
ECB ‘Closely Monitoring’ Bond Yields as Gains Spark Concern
- President Lagarde says yields matter for financing conditions
- ECB has pledged to keep conditions ‘favorable’ during pandemic
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European Central Bank President Christine Lagarde said her institution is “closely monitoring” the market for government bonds, in a sign that she might act to prevent rising yields undermining the economic recovery from the pandemic.
Yields are on the increase worldwide as investors bet that vaccinations will soon enable countries to end coronavirus restrictions, potentially unleashing a burst of consumer spending -- also fueled by fiscal stimulus -- that could boost inflation.