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Bond Yields in EU decline

FXStreet (Mumbai) - The benchmark bond yields in the core Eurozone nations as well as most of the periphery nations declined after European central Bank (ECB) member Yves Mersch said officials will extend their stimulus program by purchasing asset-backed securities.

The ten-year yield in Italy clocked a one-month low of 2.321%, while the Spanish benchmark yield fell to 2.10%. The German ten-year yield is unchanged at 0.827%. The bond prices across the Eurozone have been rising after ECB President Mario Draghi indicated last week that policymakers are willing to do more if required.

Meanwhile, Germany auctioned EUR 905 million of index-linked bonds due in April 2030 today with a real yield of -0.12%. Germany will also auction billion euros of notes due in December 2016 tomorrow.

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