PARIS (Reuters) – The European Central Bank pays close attention to the smooth functioning of financial markets, ECB President Christine Lagarde said on Monday, after French President Emmanuel Macron’s call for a snap parliamentary vote last week spooked investors.
Investors were demanding a 77-basis-point premium for lending to AA-rated France over triple-A Germany for 10 years in Monday morning trade, little changed from Friday after climbing 29 bps last week in its biggest weekly rise since 2011.
Asked if the spread was a concern, Lagarde told reporters at an event near Paris: “Price stability goes hand in hand with financial stability. We pay close attention to the smooth functioning of financial markets, and today we continue to do so.”
