European government bond yields moved to all-time lows as investors rushed to buy bonds after European Central Bank President Mario Draghi announced a larger program of government-bond purchases than the market had expected.
The yield on the German 10-year bund TMBMKDE-10Y, -18.33% hit an all-time intraday low of 0.319% around 4 a.m. Eastern time. Yields for the bund were down 6.3 basis points to 0.335% in recent trade, after closing 6.7 basis points lower on Thursday.
On Thursday, Draghi announced that, beginning in March, the ECB will buy €60 billion in eurozone government bonds a month, in an effort to stimulate economic growth in the eurozone. The program of quantitative easing will continue through September 2016. And Draghi left the door open for more after that date.
Rates were lower across Europe. In addition to the German 10-year, the yields of seven other European 10-year bonds were at record intraday lows.
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