Bloomberg reports on the matter
The report says that the ECB sees no need for drastic action to curb recent developments in the bond market, believing that the risk to the economy is manageable via verbal interventions and QE/PEPP flexibility, citing officials familiar with discussions.
Adding that while several policymakers have spoken out against the "unwarranted" push higher in yields, there is no sense of panic at central bank.
The sources also say that a step such as expanding the PEPP envelope is current unnecessary but they refused to confirm if purchases have been stepped up in recent days.
I wonder if the Fed's lack of pushback against higher yields is also causing a bit of rethink in the ECB narrative. I mean verbal intervention can only go so far before losing its effectiveness in dealing with the situation.
But given Europe's weak recovery state, I'm not sure that they can take similar steps in dealing with rising yields as the Fed is willing to do.
