Yields of bonds issued by Italy and other debt-laden nations have risen sharply since the ECB flagged a series of rate hikes last Thursday and wound down a debt-buying program in the face of soaring inflation.
“The Governing Council will have an ad-hoc meeting on Wednesday to discuss current market conditions,” an ECB spokesperson said.Article content Options open to the ECB to fight so-called fragmentation – when some countries face markedly higher borrowing costs than others – include channeling reinvestments from maturing bonds into markets experiencing stress.
The meeting comes on the same day that the U.S. Federal Reserve is expected to hike interest rates, with investors dramatically raising their bets for a 75 basis point increase, a swing in expectations that has fuelled a violent sell-off across world markets. The debt crisis a decade ago only ended when then President Mario Draghi pledged to do “whatever it takes” to save the euro and followed that promise with an unprecedented – and until now unused – bailout scheme.“Our commitment to the euro is our anti-fragmentation tool,” Schnabel, a German, said. “This commitment has no limits. And our track record of stepping in when needed backs up this commitment.
I'd just like to point out that this made twitter feed, and not once have they posted an article related to the Jan 6 hearings. Why? Because they defended trumps corruption over and over, and intend to keep doing so.
Who wants to invest in bonds that pay 0% interest? Would rather keep money in a mattress!