ECB's Villeroy: Increase in bond yields may be excessive but is helping to tighten

<ul><li>Increase in bond yields may be excessive but it is helping to tighten financial conditions</li><li>I don't think an additional rate hike is justified now</li></ul><p>This line of thinking is quickly becoming the norm. Central banks may increasingly signal that they're on the sidelines but the question is: What happens if long-end yields fall back down?</p>

This article was written by Adam Button at www.forexlive.com.