Euro zone ministers concerned by global yield rises, stress need for prudent fiscal path

European Central Bank President Christine Lagarde, also present, said the ECB was monitoring bond markets, but did not yet see any reason for concern.

"We don't see any disorderly movement. We don't see any tension. We appreciate ... that this is a global movement that affects all bonds, particularly at the longer end of the curve, for multiple reasons," she said.

European Economic Commissioner Valdis Dombrovskis said the rise in yields was a normal market response to global developments and only underlined the need to maintain prudent fiscal policies.

"That's why we are emphasising the need for prudent fiscal policies and for sticking with fiscal trajectories in the member states' medium-term fiscal plans," Dombrovskis said.

Pierrakakis said that if governments stuck to deals to gradually reduce debt, they would gain market credibility.

"In times of uncertainty, credibility becomes an economic asset. This is essential to maintain favorable financing conditions and safeguard the long-term sustainability of our public finances," he said.

Euro zone finance ministers are "concerned but not anxious" about the rise of bond yields and realise they must stick to EU-approved fiscal paths to preserve credibility, the head of euro zone finance ministers Kyriakos Pierrakakis said on Friday.

Costs of borrowing have been rising for governments globally as investors expect higher energy prices boosted by the closure of the Strait of Hormuz will fuel inflation and push up central bank rates.

Government borrowing costs hit their highest level since the 2008 financial crisis on Tuesday, with 10-year US Treasury yields rising above 5%, highlighting the tension between fast-growing global debt loads and so far resilient economic growth.