In recent weeks, yields on yields between 10-year Italian and German government bonds have widened significantly to 2.4 percentage points.
Intensifies the concern about a new euro crisis in its ranks European Central Bank (ECB) according to the German press. At an extraordinary meeting on Wednesday, the Governing Council of the ECB ways to limit divergent government bond yields of the eurozone countries 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 its administration ΕΚΤ in view of a possible new euro crisis, 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 pointsas 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.
