February 14, 2011

ECB's Draghi - some sovereign spreads overshooting

Portuguese bond spreads over benchmark German Bunds soared to a euro-era high last week as a perceived lack of progress on reforms to tackle the euro zone debt crisis unnerved investors.

"There is an 'overshooting' effect now, an upwards exaggeration, just as there was an understatement before," Draghi told the German daily Frankfurter Allgemeine Zeitung.