The prospect of further stimulus, through an asset-buying programme known as quantitative easing (QE), also buoyed stock markets. European shares rose again, building on two days of strong gains.
The pan-European FTSEurofirst 300 index inched up 0.1 percent.
Fuelling the speculation of ECB easing, Italian Economy Minister
"When the euro zone's largest economy is falling behind, this is very much increasing the chances of the ECB heading for further monetary measures, above all QE," said
The yield on the benchmark German Bund fell some 4 basis points to a record low of 0.909 percent. Yields fell across the euro zone, with records set in most higher-yielding debt, including
Euro-zone inflation data due tomorrow are likely to show a new low for this cycle of just 0.3 percent and to add to the sense of urgency on policy.
The euro broke to an 11-month low of
Some thought the euro had fallen too far.
"Our contention is that Draghi and the ECB are turning more dovish, but nowhere near as dovish as the market has interpreted itů" said
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