ECB’s Centeno says no yield spread goal in anti-fragmentation tool

© Reuters. FILE PHOTO: European Central Bank governing council member Mario Centeno speaks during an interview with Reuters in Lisbon, Portugal, March 15, 2021. REUTERS/Pedro Nunes

LISBON (Reuters) – The new instrument being designed by the European Central Bank will show its determination to fight the risk of fragmentation, but there will be no goal for specific yield spreads, governing council member Mario Centeno said on Monday.

In an emergency meeting last week, after an upward pressure on bloc’s southern rim yields, the ECB decided to create a new tool to contain divergence in borrowing costs.