Bloomberg reports that the ECB is emulating its Asia-Pacific peers by controlling government borrowing costs, just in a uniquely European way.

The ECB is buying bonds to limit the differences between yields for the strongest and weakest economies in the euro zone, according to officials familiar with the matter, with one person saying the central bank has specific ideas on what spreads are appropriate.

Investors have long wondered whether the central bank has specific levels in mind when it tries to cap bond yields. The latest insight into its strategy sheds light on how policy makers are navigating euro-area complexities that make publicly targeting bond levels difficult.

Sovereign yields are key to fighting the pandemic crisis. Not only do they influence all other loan costs, but keeping government borrowing affordable has become a critical part of monetary policy as companies and workers rely on massive, debt-financed fiscal support.