ECB is capping bond yields

The ECB is buying bonds to limit the differences between yields for the strongest and weakest economies in the eurozone, according to officials familiar with the matter, with one person saying the central bank has specific ideas on what spreads are appropriate.

FRANKFURT: The European Central Bank (ECB) is emulating its Asia-Pacific peers by controlling government borrowing costs, just in a uniquely European way.

The ECB is buying bonds to limit the differences between yields for the strongest and weakest economies in the eurozone, according to officials familiar with the matter, with one person saying the central bank has specific ideas on what spreads are appropriate. An ECB spokesman declined to comment.