Bond yields slip below zero

Short-dated notes outperformed other euro-area government debt amid speculation the European Central Bank is moving closer to extending its stimulus measures, even as president Mario Draghi said more time is required to judge the need.

Dutch and Irish two-year note yields slid to records below zero, while a €4bn auction of German debt due in 2017 attracted the most demand in a year.

Yields on Spain’s two-year notes were little changed, while those on the nation’s 10-year bonds climbed from the lowest level in a month.