Euro Zone Bond yields returned to historic low

Euro zone bond yields returned to historic lows, after the Fed displayed a dovish outlook on its monetary policy yesterday. Earlier this week, longer-dated euro zone bonds sold off as higher-than-expected U.S. consumer price inflation put forward the possibility the Fed may raise rates. Italian and Spanish 10-year yields fell 7 basis points to 2.78% and 2.69% respectively. Yields on top-rated euro zone bonds were 3-4 bps lower.