It is too early for the European Central Bank to discuss phasing out the Emergency Asset Purchase Program (PEPP) starting from the third quarter, ECB governing board member Yiannis Sturnaras said Friday, brushing aside proposals from more conservative officials.

"It's too early," Sturnaras said in an interview with Bloomberg TV. "We have no evidence that things will turn out so well in the third quarter."

"The inflation outlook is still very weak compared to our target," he said. "So I see no reason to abandon the monetary stimulus we provide."

Dutch central bank governor Klaas Knot said earlier this week that the eurozone economy is on track for a solid recovery in the second half, which could allow the European Central Bank to begin phasing out its emergency bond buying program in the third quarter.

The Minutes of the past ECB meeting indicated that the Central Bank isn’t going to introduce hard yield caps and let the risk-free rates rise in response to recovery. The move stoked concerns about further rise in yields and put additional upward pressure on bond yields. The yield on 10-year bund rose from -0.335% to -0.29% on the back of decreasing odds of possible ECB interventions.

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