German Yields Fall to Records as Moody’s Warns on Bond Scarcity
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With the European Central Bank poised to deliver an update on its bond-buying program on Wednesday, the assessment of investors is becoming clear -- prepare for ever-lower yields.
Germany’s 10-year yields dropped to a record on Tuesday, along with those in five other euro-area nations, as the ECB’s 1.1 trillion euro ($1.2 trillion) quantitative-easing program boosted prices of sovereign securities across the region. The ECB could run out of eligible bonds to buy from some governments around the end of this year, which may prompt the central bank to loosen the rules of the plan and further suppress yields, according to Moody’s Investors Service.