Draghi strikes again, German 2-yr yield hits record low

FXStreet (Mumbai) - The ECB’s Draghi heightened hopes of more easing at Dec 3rd meeting after he stressed the readiness to do more to battle low inflation.

The European stock markets strengthened, EUR/USD dropped and bond yield across the Eurozone fell. Draghi’s comments pushed up the bets of another cut in the deposit rate.

Consequently, the two-year German bund yield fell to a record low of -0.87%, before recovering slightly to trade around -0.379. The benchmark 10-yr bund yield has managed to stay moderately positive.