ECB Tool to Avert Debt Crisis 2.0 Takes Shape as Market on Edge
Details are emerging of how the European Central Bank plans to stave off undue panic in government bond markets as investors worry a repeat of the continent’s sovereign-debt crisis of the last decade may be on the horizon. The ECB’s Governing Council held an emergency meeting Wednesday as the prospect of the first interest-rate increases in a decade to tackle record inflation sent Italian yields to their highest since 2013, widening the gap over equivalent German notes. Officials’ announcement later, that work on a new instrument will be sped up, triggered a rally that lasted into the weekend. But its longevity .
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