ECB to hold | The Independent Business News

The European Central Bank is due to hold an unscheduled meeting on Wednesday amid growing fears that turmoil in bond markets will lead to sharp increases in the cost of government borrowing.

Bond yields – which indicate the price governments must pay investors to borrow money – have risen sharply as central banks raise interest rates to contain a spike in the cost of living.

Rising debt interest payments could hamper governments’ ability to provide financial relief to households and businesses struggling with massive increases in fuel and energy costs.

“The Governing Council will hold an ad hoc meeting on Wednesday to discuss current market conditions,” an ECB spokesperson said. Reuters.

Bond yields have risen sharply since the ECB announced its rate hike plan last Thursday.

The premium some member states are paying over the German 10-year risk-free bond has widened. German ten-year yields currently stand at 1.77%, while their Italian counterparts are 240 basis points higher – the biggest gap since early 2020

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This notice was published: 2022-06-15 09:47:23

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