Draghi Stokes Bond Gains With Record Yields From France to Italy
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Euro-area government bonds rose, pushing yields in Ireland and Italy to record lows, as European Central Bank President Mario Draghi said officials would broaden debt purchases should the inflation outlook diminish.
Austrian and French 10-year borrowing costs also dropped to the least on record as the comments boosted speculation that the ECB will add buying sovereign debt to its stimulus program, or quantitative easing. That policy already includes purchasing covered bonds and asset-backed securities. Spanish and Portuguese securities also climbed as Draghi spoke today at a conference in Frankfurt.