The European Central Bank said it would skew reinvestments of maturing debt to help more indebted members and will devise a new instrument to stop the excessive widening of yield spreads.
Just this month alone, Italian 10-year bond yields have soared almost 100 basis points (bps).
Spanish, Portuguese, and Greek bond yields also jumped around 80 bps each.
The euro meanwhile trimmed gains and was last flat on the day at $1.0409, it was up 0.3% before the statement.
Focus now shifts to the U.S. Federal Reserve, which is expected to deliver a hefty interest rate hike later in the session.