ECB Says Higher Yields Could Trigger New Debt Concerns

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ECB's Constancio Doesn’t Fear a Market Policy Surprise

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The European Central Bank said debt-sustainability concerns have risen in the past six months amid a potential increase in yields and political uncertainty in some countries.

“Risks to financial stability stemming from financial markets remain significant,” the Frankfurt-based institution said in its Financial Stability Review. An abrupt bond-market repricing could “materialize via spillovers from higher yields in advanced economies, in particular the United States.”