The Euro and European Bond yields Fall as Low Inflation Raises Easing Prospects

“European government bonds rose, pushing French yields to a record low, and the euro weakened as slowing inflation boosted the prospect of more central bank stimulus. Futures on the Standard & Poor’s 500 Index (SPX) were little changed after the gauge closed at an all-time high yesterday.

French 10-year bond yields fell as low as 1.70 percent as of 7:25 a.m. New York time, while the euro weakened against all but two of its 16 major peers. The MSCI All-Country World Index of shares added 0.2 percent, extending the highest level since June 2008. European stocksheaded for an 11th month of gains, and corn for July delivery advanced 0.8 percent to $6.65 a bushel in Chicago. Treasuries rose…”

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