Countering an excessive increase in sovereign yields when it stems from redenomination risk and distorts monetary policy transmission is fully within the Eurosystem’s mandate.
12  BIS central bankers’ speeches  The OMT will only be activated in the presence of severe market strains and are confined to the securities of countries adhering to a macroeconomic adjustment or precautionary programme financed with the resources of the European Stability Mechanism (ESM, a financial backstop jointly funded by EU countries set up during the crisis).