July 3, 2014 / 1:47 PM / 3 years ago

Low-rated euro zone bond yields fall on dovish ECB

LONDON, July 3 (Reuters) - 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)

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