Bond Yields From Finland to France Sink to Records on QE Wagers
- Germany auctions 10-year benchmark at lowest yield since April
- Treasury-bund spread near three-month high before Fed decision
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Euro-area government bonds rallied, sending short-term yields from Belgium and Finland to France and Germany to record lows, in a signal that the market believes Mario Draghi when he hinted last week the European Central Bank will ease monetary policy further.
Germany’s 10-year bund, Europe’s benchmark sovereign bond, was little changed after the nation sold the securities at the lowest auction yield since April. Bonds were supported by remarks Tuesday from ECB President Draghi’s colleague, Executive Board member Benoit Coeure, who reiterated the institution may need to do more to help boost prices, as inflation has failed to rebound.