FXstreet.com (Barcelona) - Since the German newspaper Der Spiegel reported last weekend that the ECB is planning to set yield limits on EU countries' bonds, which the central bank subsequently denied, markets have been buzzing with anticipation of further news on the matter. As the German Finance Ministry also presented its objections towards such a move, ING analyst Padhraic Garvey believes that “bond yield or spread caps are unlikely at this juncture.”

Mr. Garvey does not see the ECB to “have the nerve to pull such a plan off as they would have to put their balance sheet on the line and it would likely be pushed to the very limit.” In his opinion such an action might be carried out in the future but it is not probable at this moment.