Why are high bond yields a problem?

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Above seven percent gets people worried and here is why.

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Hi,
I believe Eugene's observation is spot on. Lets take a hypothetical country X, and say that currently it's yields on bonds is high, so is the borrowing rate of interest( they are correlated), which would obviously mean that the bond prices are low.
Now come OMT and a huge chunk of those low priced bonds are bought by ECB. Supply constant and demand rises, the price of the bond goes up. And so does the liquidity in the market, while bringing the yield down. As soon as liquidity/credit increases, it boosts inflation.
So as Eugene said, OMT is implicit inflation
Thanks and please correct me if am mistaken.

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Hi,
This would mean that our debt is more than what we are producing each year. This may further downgrade our credit ratings and increase the rate at which we can borrow more money. Besides the chances of default also rises

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