German government bonds extended an advance after European Central Bank President Mario Draghi said inflation risks are “very low over the medium term.”
Ten-year German yields declined six basis points, or 0.06 percentage point, to 1.38 percent at 12:27 p.m. London time. Two-year note yields fell three basis points to minus 0.04 percent.
“The weak overall economic situation, combined with slow money growth, means that the risks of inflation are currently very low over the medium term,” Draghi said in a speech in Frankfurt. “Our interventions will not change this outlook.”
To contact the reporter on this story: Emma Charlton in London at firstname.lastname@example.org