European Central Bank President Christine Lagarde has warned that a sharp sell-off in government bonds is tightening financial conditions across the eurozone, threatening to weaken economic growth at a time when European governments are already struggling with mounting debt and higher energy prices. Speaking during the International Monetary Fund’s annual meetings on Saturday, 17 October, Lagarde said rising bond yields were imposing additional pressure on the European economy, potentially reducing demand and helping to bring inflation down.
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