Spanish Bonds Show Resilience as Draghi’s QE Shortens Selloffs
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With his words and his actions, Mario Draghi is making it harder for investors in European government-bond markets to bet against the currency bloc’s survival.
After declines that pushed Spain’s 10-year yields to a two-month high, the securities demonstrated their resilience on Monday, bolstered by the European Central Bank President’s 1.1 trillion euro ($1.2 trillion) bond-buying program. Higher yields enticed buyers and they ended little changed even as Greek bonds slid amid a government decree to force local governments to transfer cash balances to the central bank.