Euro zone government bonds rallied on Thursday as regional investors monitored the European Central Bank's decision to cut interest rates by 25 basis points.
The move had been largely priced into markets, with LSEG data showing traders had given the quarter-point cut a more than 90% chance of going ahead before it was announced.
Shortly after the ECB announced it would reduce its key interest rate to 2%, the yield on German 10-year government bonds — seen as a benchmark for the euro zone — fell 4 basis points.
Bond prices and yields move in opposite directions, so rising demand can push prices higher and yields lower.
The yield on French 10-year government bonds was down by 3 basis points at 1:43 p.m. in London, while their Italian counterparts saw yields move 5 basis points lower. Spanish 10-year bond yields fell by 4 basis points.
— Chloe Taylor
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