Draghi Seen at Guidance Limits as Market Rates Rise

Mario Draghi is discovering the limits of what his interest-rate pledge can achieve.

After three attempts to talk down market rates, the amount that banks expect to charge each other for cash in a year is back to the levels when he started. Government debt yields from Germany to Italy are rising as investors take on more risk. The European Central Bank president conceded yesterday that the unprecedented experiment in ECB communication hasn’t quite reined in investors’ enthusiasm about the euro area’s recovery.