Europe’s Bonds Surge as ECB Buying Plan Sends Yields to Records

The European Central Bank’s unprecedented bond-buying plan crushed euro-area yields this week as investors jostled to get hold of government debt before the purchases begin in March.

For the first time on record, Italy’s 10-year borrowing costs fell below 1.5 percent, and yields set all-time lows across the region, with the biggest moves coming from longer-maturity bonds. While Spain’s 10-year yield fell as low as 1.249 percent on Friday in London, Commerzbank AG says it will continue dropping as far as 1 percent in the first quarter as investors seek higher-yielding assets. Pacific Investment Management Co. said there are few reasons to sell the securities at these levels.