ECB Billions Can’t Save Euro-Area Bonds From Worst Quarter Ever

The European Central Bank’s first full quarter of quantitative easing hasn’t stopped the region’s government bonds from heading for their worst performance on record.

The rout started in April after the ECB’s purchases helped send yields on more than $2 trillion of euro-area sovereign debt below zero, sparking an investor backlash against such meager returns given the region’s improving economic outlook. ECB President Mario Draghi added fuel to that fire this month when he said markets must get used to periods of higher volatility. The latest turmoil in Greece further undermined bonds from Europe’s periphery, even as it revived some demand for the relative safety of German debt.