Concerns are growing about a new euro crisis in the ranks of the European Central Bank (ECB), according to the German press. At an emergency meeting on Wednesday, the ECB’s Governing Council explored ways to limit divergent yields on eurozone government bonds by redistributing its portfolio. This would allow them to buy more bonds from countries such as Italy and Greece, writes the Frankfurter Allgemeine Zeitung.
The convening of the extraordinary meeting alone shows a disturbance in the administration of the ECB in view of a possible new crisis of the Euro, the newspaper comments. In recent weeks, yields on 10-year Italian and German government bonds have widened to 2.4 percentage points. In the euro crisis of 2012, this gap was much larger, namely more than 5 percentage points.
Greece continues to maintain the highest yields on ten-year bonds with 4.5 percentage points, as supplemented by the daily financial newspaper Handelsblatt.
With the announcement of the ECB, the yields were reduced by almost half a percentage point below 4.2%. Under the Pandemic Emergency Program (PEPP), the ECB is buying Greek government bonds, despite its previous refusal due to the country’s poor creditworthiness.
Efthymis Angeloudis
SOURCE: Deutsche Welle
Source: Capital

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