Euro, bond yields fall after ECB extends asset purchases

LONDON, Oct 26 (Reuters) - Euro zone bond yields and the single currency fell on Thursday after the European Central Bank said it would extend asset purchases until at least September 2018 at a reduced pace.

The ECB said on Thursday it would continue its bond-buying scheme beyond its current December 2017 end date at a monthly pace of 30 billion euros.

The euro fell half a percent to the day’s lows of $1.1758 after the decision.

Euro zone government bond yields fell across the board. The yield on Germany’s 10-year government bond was down 4 basis points on the day at 0.44 percent.

Euribor futures rose broadly after the ECB decision , as investors started to price out future rate increases.

The pan-European STOXX 600 index hit a session high, last up 0.6 percent. Euro zone banks also extended gains to hit a session high, and were 1.1 percent higher. (Reporting by London Markets Team; Editing by John Geddie)