Euro-Area Bonds Boosted as Draghi Signals ECB Stimulus in June
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Euro-area government bonds rose this week, pushing Irish, Italian and Spanish 10-year yields to record lows, as speculation the European Central Bank will cut interest rates next month boosted demand for the securities.
Analysts from Goldman Sachs Group Inc. to UBS AG revised their forecasts to expect an interest-rate cut in June after ECB President Mario Draghi said officials would be “comfortable” adding stimulus if needed. Spanish and Italian bonds advanced as gauges of service-sector output expanded in April, adding to signs their economies are recovering. Portugal’s securities climbed as Standard & Poor’s revised the nation’s credit-rating outlook to stable from negative.