© Reuters. FILE PHOTO: The European Central Bank (ECB) presents the new 50 euro note at the bank’s headquarters in Frankfurt, Germany, July 5, 2016. REUTERS/Ralph Orlowski
LONDON (Reuters) – Euro zone government bond yields rose on Monday, reversing early falls, after European Central Bank policymaker Francois Villeroy de Galhau said a weak euro threatened price stability in the currency bloc.
The euro’s weakness on currency markets could threaten the ECB’s efforts to steer inflation towards its target, Villeroy said.
The comments triggered a rise in bond yields with German Bund yields last up 3 basis points on the day at 0.98%. They had been 2 bps lower in earlier trading. Italian 10-year bond yields gained 6 bps to 2.91%.