Euro zone borrowing costs tumble on ECB Lagarde comments
LONDON, Feb 22 (Reuters) - Government bond yields across theeuro area fell on Monday after European Central Bank chiefChristine Lagarde said the ECB was "closely monitoring" risingborrowing costs.
Sovereign bond yields across the single currency bloc haverisen sharply this month as prospects for more U.S. fiscalstimulus boosts hopes for a faster economic recovery globallythat also lifts inflation.
But Lagarde's comments, a clear sign that policymakers arebecoming uncomfortable with the recent surge in yields thatcould hurt recovery prospects, pushed yields back down.
Germany's 10-year Bund yield was last down 4 bps on the dayat -0.35%, having hit a fresh 8-month high at-0.278% in early trade. Italian 10-year bond yields meanwhilefell almost 4 bps to 0.58%.
(Reporting by Dhara Ranasinghe) ...