Global Bond Rout Noticeable But Manageable for Euro Area

Euro-area yields have risen sharply since the start of February, raising concern at the European Central Bank. Yet Bloomberg Economics’ analysis gives reason for calm -- borrowing costs would need to jump by four times as much to push debt servicing burdens back to the levels seen in the aftermath of the euro-zone crisis. The main risk would be if higher yields prompted an unhelpful focus on fiscal sustainability at a time when supporting the recovery should be the priority.