It didn’t take long for bond traders to put the European Central Bank to the test, forcing policy makers to hold an emergency meeting Wednesday as they struggled to prevent dislocations in European government bond markets that, if left unchecked, could threaten the viability of the euro itself.
Following the meeting, the ECB announced it would create a new instrument to prevent borrowing costs for the eurozone’s most indebted nations from spiraling to unsustainable levels.
Meanwhile,…