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Euro Area's Negative-Yielding Debt Tops $2 Trillion on Draghi

  • Euro-area bonds rose last week amid speculation of more easing
  • One-third of euro zone's securities now yield less than zero
Updated on

Investor expectations that European Central Bank President Mario Draghi will expand monetary easing are pushing even more euro-area government-bond yields below zero. The total has risen to more than $2 trillion, or about one-third of the securities.

Bonds across the region climbed last week when Draghi said the institution will do what’s necessary to rapidly accelerate inflation. The statement recalled the language of his 2012 pledge to do “whatever it takes” to preserve the euro and it solidified investor bets on further stimulus at the ECB’s Dec. 3 meeting. Two-year note yields of Germany, Austria and the Netherlands all dropped to records on Monday, while 10-year bond yields rose.