Lagarde: ECB apparently not intervening in the bond market
French government bonds have been under heavy pressure for weeks. ECB chief Christine Lagarde does not want to intervene in the bond market and is putting the onus on France.
Christine Lagarde, head of the European Central Bank (ECB), has stated that the French government is responsible for resolving its debt issues, dampening speculation of ECB intervention in the bond market. Speaking to CNN in Bangkok, Lagarde emphasized that France must take the lead in addressing its problems, suggesting that the country should consolidate its budget to tackle its debt.
French government bonds have been heavily affected by a global sell-off, with investors worried that political uncertainty ahead of next year's presidential election may hinder efforts to reduce the country's high budget deficit. The ECB has a program, the Transmission Protection Instrument (TPI), which allows it to buy unlimited amounts of bonds from distressed eurozone countries, but only under certain conditions.
Written by urgent.news from Handelsblatt's report — not a translation of it. Machine-written — may contain errors; check the original before relying on it.
