ECB 'closely monitoring' rising sovereign yields: Lagarde
"Accordingly, the ECB is closely monitoring the evolution of longer-term nominal bond yields"
FILE PHOTO: European Central Bank (ECB) President Christine Lagarde addresses a news conference on the outcome of the meeting of the Governing Council in Frankfurt, Germany, January 23, 2020. REUTERS/Ralph Orlowski
The European Central Bank is "closely monitoring" nominal government bond yields, ECB chief Christine Lagarde said on Monday, a clear sign that policymakers are becoming uncomfortable with the recent surge in yields.
"Within the broad-based set of indicators that we monitor to assess whether financing conditions are still favourable, risk-free overnight indexed swap rates and sovereign yields are particularly important," Lagarde said in a speech.
"Accordingly, the ECB is closely monitoring the evolution of longer-term nominal bond yields."
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