LONDON, July 3 Lower-rated euro zone bond yields
fell on Thursday as investors perceived European Central Bank
President Mario Draghi's post-meeting comments as reinforcing
the bank's ultra-easy monetary policy.
Draghi said a raft of measures introduced last month will
help lift inflation and support bank lending but the ECB stands
ready to create money in future if required.
"Draghi's ongoing commitment to very low rates for a very
long time has reignited investors' appetite for carry and for
yield," one trader said.
Ten-year Italian yields were last 5 basis
points lower at 2.75 percent. Spanish and
Portuguese 10-year yields fell by a similar amount
to 2.69 percent and 3.61 percent, respectively.
Greek yields reversed their earlier rise to
trade flat at 5.98 percent, while German Bund futures
pared almost all their losses caused by better-than-expected
U.S. non-farm payroll data earlier in the day.
(Reporting by the London bonds desk; writing by Marius Zaharia;
Editing by Emelia Sithole-Matarise)