- European Central Bank Governing Council member Klaas Knot said it would be legitimate for the central banks to frontload bond purchases if needed.
- “We don't want the runup in bond yields to prematurely tighten our financing conditions,“ Knot, who is also president of the Dutch central bank, said.
- His comments come after the ECB decided at its last meeting to ramp up bond buying within its Pandemic Emergency Purchase Program, or PEPP.
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A woman walks past a closed cafe as Rome becomes a 'red zone', going into lockdown, as the country struggles to reduce the coronavirus disease (COVID-19) infections, in Rome, Italy, March 15, 2021.
Yara Nardi | Reuters
LONDON European Central Bank Governing Council member Klaas Knot said Thursday he doesn't want to see a premature run-up in government bond yields and that the ECB could take action to address this if needed.