Euro-Area Bonds Extend Drop as Draghi QE Extension DisappointsLucy Meakin
Euro-area government bonds extended a drop after European Central Bank President Mario Draghi unveiled an extension of asset purchases that fell short of some investors forecasts.
“Draghi underdelivering is a surprise,” said Marius Daheim, a senior rates strategist at SEB AB in Frankfurt. It’s a “clear disappointment,” he said.
Germany’s two-year note yield climbed eight basis points to minus 0.36 percent as of 1:39 p.m. London time. The zero percent security due in December 2017 fell 0.175, or 1.75 euros per 1,000-euro face amount, to 100.73.