Euro Bonds Surge on ECB Shock Waves

Euro-area government bonds surged this week, propelling yields across the currency bloc to record lows, as an unprecedented package of European Central Bank stimulus measures added fuel to this year’s rally.

Yields from Belgium to Spain fell to the least on record and Germany’s five-year rates dropped to the lowest in more than a year. ECB President Mario Draghi said two days ago the central bank would start work on a quantitative-easing-style plan to purchase asset-backed debt and introduce a program to encourage banks to lend as he sought to counter slowing inflation.