ECB’s Knot Says Rising Yields Reflect Optimism About Outlook

Rising government bond yields are a “positive story” because they reflect expectations for an improving economy, European Central Bank Governing Council member Klaas Knot said.

“There is reason to be optimistic about the second half of the year when the lockdowns will be lifted,” despite uncertainties about the current vaccination drive and businesses’ health, Knot said in a webcast panel discussion on Thursday. “What the market is actually doing is pricing that optimism.”