Economics
ECB Is Capping Bond Yields But Don’t Call It Yield Curve Control
- Lagarde will this week say financing conditions are locked in
- Public yield targets would be very difficult in the euro zone
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The European Central Bank is emulating its Asia-Pacific peers by controlling government borrowing costs, just in a uniquely European way.
The ECB is buying bonds to limit the differences between yields for the strongest and weakest economies in the euro zone, according to officials familiar with the matter, with one person saying the central bank has specific ideas on what spreads are appropriate. An ECB spokesman declined to comment.