LONDON (Reuters) – The current turmoil in euro zone bond markets, particularly in France amid uncertainty over the outcome of early legislative elections, is not disorderly, the Bank’s chief economist said on Monday European Central Bank (ECB), Philip Lane, downplaying the need for ECB intervention.
“What we are seeing in the markets is a revaluation of prices, but it is not a disordered market at the moment,” he said in an interview at the Reuters event Newsmaker at the London Stock Exchange.
The ECB sets as a condition for any intervention in the bond markets an unjustified and disorderly evolution of yields.
The prospect of a victory for far-right or left groups pushed the yield gap between French and German ten-year bonds on Friday to a seven-year high, above 82 basis points.
Five ECB officials told Reuters the ECB had no plans to discuss using its emergency bond-buying program to help France.
(Reporting by Balazs Koranyi, David Milliken, Marc Jones and Dhara Ranasinghe; written by Francesco Canepa in Frankfurt; Diana Mandiá, edited by Blandine Hénault)
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