Panetta: Steepening Of Yield Curve "Must Be Resisted"

Key comments by ECB Exec Board's Fabio Panetta on the recent rise in eurozone yields (in line with his Board colleagues' recent comments): "The steepening in the nominal GDP-weighted yield curve we have been seeing is unwelcome and must be resisted... Amid the increase in market yields, President Lagarde recently stated that "the ECB is closely monitoring the evolution of longer-term nominal bond yields."

• "In the past week, euro area yields across the maturity spectrum, including risk-free rates, have remained well above the levels seen at the start of this year. So we should not hesitate to increase the volume of purchases and to spend the entire PEPP envelope or more if needed. In this way, we can prevent a tightening of financing conditions which would otherwise lead to inflation remaining below our aim for longer."