Negative bond yields are a collateral effect - ECB’s Constancio

FXStreet (Mumbai) - The European Central Bank’s (ECB) Vitor Constancio, in his presentation to EUR parliament on Monday, said that the negative bond yields in the Eurozone economies is a collateral effect of the ECB’s QE program.

He further added that the QE program did not aim for negative yields, while stating that the bank is closely watching the bonds with negative yields.

Constancio’s comments on negative yields come at a time when Germany has negative yields on bonds maturing up to 8 years. The 9-year bond hit negative levels on Friday before moving back above zero levels. Meanwhile, the 10-year yield in Germany also hit a record low of 0.049% on Friday.