ECB’s Schnabel Says Rising Yields Reflect Economic Turning Point

European Central Bank Executive Board member Isabel Schnabel played down concerns over rising borrowing costs as policy makers prepare for their next meeting, saying that higher bond yields reflect an improving economy.

“Rising yields are a natural development at a turning point in the recovery -- investors become more optimistic, inflation expectations rise and, as a result, nominal yields go up,” Schnabel said in an interview with Reuters. “This is precisely what we would expect and what we want to see.”