ECB Swigs on Bond-Rout Liquidity Before Summer Sovereign Drought

For Mario Draghi, the cloud over Europe’s bond market comes with a silver lining.

After six weeks of quantitative easing helped push sovereign-debt yields to levels that disqualified about 8 percent of bonds from the program, the recent drop in prices has replenished the larder. That correction eases the task for the ECB president and his officials as they prepare for a tougher squeeze when market liquidity evaporates in August.