Greek Woes Push German Yield to Record Low as Spanish Bonds Drop

Greece’s negotiations to secure funding and avoid a default weighed on other euro-area government debt markets, with securities from Spain and Italy dropping, while German 10-year yields touched a record low.

Greek government bonds headed for their worst week since the aftermath of Syriza’s election in January as officials worked to reach an agreement before the nation faces payments of almost 1 billion euros ($1.1 billion) next month. German securities are also being boosted after Mario Draghi this week said the European Central Bank’s 1.1 trillion-euro quantitative-easing program must be implemented in full. That program has also been insulating bonds from the region’s periphery from the worst of the Greek selloff.