The European Central Bank is ready to do “whatever it takes” to support the euro, its president has said.
Mario Draghi’s strong message of support prompted a rally in European share markets and the euro.
They also triggered a fall in bond yields. Spain’s 10-year yield, which had hit a record high of 7.6% earlier, fell back to 7%.
Bond yields are an indication of the interest rate a country would have to pay to borrow money.
A rate above 7% is generally seen as unsustainable in the long run.
Leading stock markets rose, with London’s FTSE 100 share index up more than 1%, Germany’s Dax rising almost 2% and France’s Cac climbing 3%.
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