Economics
ECB’s Villeroy Signals Action to Battle Threat of Rising Yields
- Bank of France head says pandemic bond program is first tool
- Latest data show ECB’s bond-buying program slowed last week
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The European Central Bank “can and must react against” any unwarranted rise in bond yields that threaten to undermine the euro-area economy, policy maker Francois Villeroy de Galhau said.
The comments by the Bank of France governor, among the strongest yet by ECB officials, encouraged investors to bet that the central bank is already stepping up its own emergency bond-buying program. While fresh data on Monday showed net purchases slowing last week, it said the figures were distorted by redemptions.