The European Central Bank is considering setting limits on yields of Eurozone sovereign bonds, Germany's Spiegel magazine reported Sunday without mentioning its sources.
The central bank will intervene and buy the bonds if their interest rates exceed a pre-determined threshold above German bonds, the magazine said.
The ECB will take a decision on the proposal at the governing council meeting in September, it said. Spiegel said that the yield limit will serve as a signal to investors of what ECB considers as an appropriate level.
According to the report, ECB will announce the size of its bond buys from each euro member states immediately after the purchases to improve transparency.
by RTT Staff Writer
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