ECB easing prospects push eurozone yields to new record lows

London

EUROZONE bond yields plumbed new record lows on Tuesday, as financial markets took comfort from European Central Bank (ECB) president Mario Draghi's vow to lift inflation from near zero by whatever means necessary.

Spanish 10-year yields were below 2 per cent, Irish yields below 1.5 per cent and Portuguese yields under 3 per cent. Most eurozone yields were at or near all-time lows as investors bet the ECB would expand its asset buying to include sovereign debt.

The central bank has started to buy asset-backed securities and covered bonds, and is due to offer a new round of long-term loans to banks next month as it tries to encourage lendin…