European Central Bank Governing Council member and Bank of Spain Governor Escriva said on the 29th that the sustained rise in global bond yields and persistently high energy prices are the main concerns for ECB policymakers. The governor noted that interest rates have not yet reached levels high enough to restrain economic growth, and said, "I am beginning to worry about the global upward trend in long-term interest rates." He expressed the view that rising yields could put upward pressure on interest rates, while persistently high energy prices could trigger dangerous second-round inflation effects.
Escriva warns the global rise in long-term yields and high energy prices are top ECB concerns, implying upward pressure on rates — i.e., higher yields.
