European Central Bank President Mario Draghi has boxed himselfinto a corner.

Spanish and Italian bond markets rallied yesterday as investorscheered Draghi's signal that the ECB is prepared to intervene toreduce soaring yields. Now he has to deliver, or face deepdisappointment on financial markets, analysts said. The risk indoing so is alienating key policy makers on the ECB council, suchas Bundesbank President Jens Weidmann. The Bundesbank reiteratedits opposition to bond purchases today.

“Draghi is damned if he does and damned if he doesn't,” saidCarsten Brzeski, senior economist at ING Group in Brussels. “Hemaneuvered himself into an extremely difficult situation.Expectations are very high.”