ECB President Lagarde said in Bangkok that a global bond sell-off has pushed up euro-area borrowing costs, weighing on growth and ultimately reducing inflationary pressure. Rising yields reflect investor concerns about debt and inflation and increased credit competition from AI-related investment; heavily indebted France is among the worst affected. She warned that tighter financing conditions and a marked rise in long-term yields since the last ECB meeting will make it harder for consumers to a

ECB President Lagarde said in Bangkok that a global bond sell-off has pushed up euro-area borrowing costs, weighing on growth and ultimately reducing inflationary pressure. Rising yields reflect investor concerns about debt and inflation and increased credit competition from AI-related investment; heavily indebted France is among the worst affected. She warned that tighter financing conditions and a marked rise in long-term yields since the last ECB meeting will make it harder for consumers to absorb Iran-war driven fuel-price increases and will slow growth, weakening price pass-through versus the ECB’s September forecast.