Overnight comments from Bundesbank Board member Joachim Nagel – he warned of mispricing risks as the yield on Eurozone government bonds approach levels last seen pre-crisis:
- “In the run-up to the crisis, risks were generally mispriced and it is questionable whether risk premia should return to levels seen before the crisis”
- “It would certainly be a beneficial development if risks were priced more accurately than previously”
- Nagel described the current risk assessment as “too lax”, adding that policy makers must be alert to the risks
