ECB's de Guindos: Have seen important narrowing of spreads

The European Central Bank (ECB) can't allow an additional fragmentation of sovereign markets, ECB Vice President Luis de Guindos said on Wednesday. "We have seen an important narrowing of spreads."  

While delivering his prepared remarks at the Institute of International and European Affairs earlier in the day, "the widening of sovereign bond spreads – on account of the macroeconomic outlook and the sizeable fiscal policy responses endorsed by national governments – is particularly troubling from a monetary policy perspective," de Guindos noted. 

Market reaction

These comments had little to no impact on the shared currency's performance against its rivals. As of writing, the EUR/USD pair was up 0.22% on the day at 1.1365.