ECB Vice President Vujčić stated that rising global bond yields do not pose a threat to financial stability, citing strong capitalization and ample liquidity within euro area banks. Global yields have reached pre-financial crisis highs driven by inflation expectations, interest rate outlooks, and significant borrowing needs from governments and technology companies. Vujčić noted that while market bets on further ECB rate hikes are primarily driven by rising energy prices, policymakers will base decisions on broader economic indicators rather than energy costs alone. He warned that sustained high inflation through autumn could dampen GDP by impacting household incomes and consumption, adding that the ECB will monitor upcoming data and adjust policy accordingly.