Benchmark bond yield hits new 13-year lows


Government borrowing costs in Southern Europe hit fresh lows on Tuesday, pushed down by hopes that this week’s European Central Bank meeting will reinforce expectations for supportive policy measures in the months ahead.

In generally subdued trade, peripheral markets continued their recent outperformance.

Recent talk of an early loan repayment to the International Monetary Fund by Greece, which also plans to issue a new bond soon, have helped lift sentiment toward peripheral markets.

Greece’s 10-year bond yield hit a 13-year low on Monday and dropped further on Tuesday to 3.46 percent.