Bond Market Braces for Draghi With Record-Low Short-Term Yields
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Euro-area money-market rates were near record lows as traders prepared for the European Central Bank’s policy decision amid speculation officials will boost stimulus measures to support the region’s economy.
Bonds across the currency bloc surged last week, pushing yields to record lows, as ECB President Mario Draghi fueled bets on expanded asset purchases by saying in an Aug. 22 speech officials were “ready to adjust our policy stance further.” Governments are benefiting from the rally as they lock in lower borrowing costs, with France and Spain selling debt at record-low average yields at auctions today.