Bundesbank's Nagel: ECB Tools Target Inflation, Not Bond Spreads

Bundesbank president Joachim Nagel clarified that ECB bond-buying instruments are aimed at price stability, not at managing specific sovereign spreads, amid market speculation over possible intervention following a selloff in French government bonds. This signals a reluctance to use the Transmission Protection Instrument (TPI) to cap French yields, potentially leaving spreads to widen. The statement may increase pressure on French debt and could influence ECB policy expectations.