LONDON, Aug 15 (Reuters) - Italy’s 10-year bond yield fell to a near three-year low and German bond yields hit fresh record lows on Thursday, following reports of comments by the European Central Bank’s Olli Rehn that a significant easing package was needed in September.
Two analysts told Reuters that Rehn’s comments to the Wall Street Journal fuelled expectations for ECB easing soon, adding to momentum to a huge bond market rally.
Italy’s 10-year bond yield fell to its lowest since late 2016 at 1.33%, and was last down almost 20 bps on day. Germany’s 10-year Bund yield fell to -0.706%, a record low.
Reporting by Dhara Ranasinghe; Editing by Saikat Chatterjee