Bonds Rally as Draghi Says QE Program Must Be Fully Implemented
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Euro-area government bonds rose as European Central Bank President Mario Draghi said policy makers’ debt-buying plan must be implemented in full to work.
The 1.1 trillion euro ($1.2 trillion) quantitative-easing plan has already changed the face of the region’s debt markets. Yields on about $2 trillion of euro-denominated sovereign debt are currently below zero, with $582 million of that below the ECB’s deposit rate of minus 0.2 percent. Germany’s 10-year bonds, the region’s benchmark government securities, set a record-low yield during a press conference given by Draghi on Wednesday, and an auction earlier in the day reflected the clamor of demand that the ECB program has inspired.